Chip Stock Anxieties Revived as Micron Sales View Misses
(Bloomberg) -- Semiconductor stocks appear poised to extend September’s losing streak on Friday after a disappointing revenue forecast from Micron Technology Inc. is reviving fears about demand.
Micron, the largest U.S. memory chipmaker, sank 5.7 percent in pre-market trading after forecasting fiscal first-quarter sales of $7.9 billion to $8.3 billion. That fell short of the average analyst estimate of $8.45 billion, according to data compiled by Bloomberg. Competitor Western Digital Corp. declined 1.8 percent, while semiconductor equipment suppliers Applied Materials Inc. and Lam Research Corp. fell about 1.5 percent. Industry giants Nvidia Corp. and Intel Corp. slipped 0.4 percent.
Semiconductor stocks, one of the best performing sectors in the last two years, have struggled to make new highs. While the S&P 500 Index closed at another record Thursday, the Philadelphia Semiconductor Index is down 4 percent since its March high and has lost ground this month.
Contributing to investors’ angst is Micron’s comment that the trade war between the U.S. and China would hurt profitability in the first quarter.
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