Chip Stocks Extend Worst Rout Since April

(Bloomberg) -- Semiconductor stocks in the U.S. extended their worst five-day slump since April amid a broader market rout that has found newly risk-averse investors shunning many of this year’s top performers, especially technology companies.

• The Philadelphia Semiconductor Index fell 2.6 percent at 12:38 p.m. in New York. The 30-member benchmark has dropped about 8 percent over the past five trading days.
• The biggest decliners Wednesday included ASML Holding NV, Marvell Technology Group Ltd, Qorvo Inc. and Nvidia Corp., which each fell more than 4 percent; Advanced Micro Devices Inc. has lost over 6 percent
• European chip stocks fell earlier after a new short-time work plan at VAT Group, which makes vacuum products for semiconductor industry, pointed to further weakness in the sector
• Analysts have been increasingly bearish in recent weeks about the risks of a cyclical downturn for semiconductors. Deutsche Bank and Morgan Stanley both cut their estimates for chip stocks last week.

--With assistance from Arie Shapira.

To contact the reporter on this story: Kriti Gupta in New York at kgupta129@bloomberg.net

To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Catherine Larkin, Jeremy R. Cooke

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