Chip stocks slammed by Nvidia's weak forecast

Silicon Motion Technology

28/01/2019 15:05

** Philadelphia semiconductor index  .SOX  slides ~3 pct,
after Nvidia  NVDA.O  chops its Q4 revenue forecast  urn:newsml:reuters.com:*:nL3N1ZS44G
    ** Nvidia plunges ~16 pct; CEO calls Q4 "an extraordinary,
unusually turbulent, and disappointing quarter" and blames weak
demand for its gaming chips in China and lower-than-expected
datacenter sales 
    ** Chip index had rallied ~8 pct in last two days after some
soothing earnings reports, including from Xilinx  urn:newsml:reuters.com:*:nL1N1ZO15P,
and despite Intel's weak forecast  urn:newsml:reuters.com:*:nL3N1ZP48B
    ** Intel  INTC.O  down another 1.4 pct; AMD  AMD.O  7.8 pct;
Micron  MU.O  2 pct; Broadcom  AVGO.O  2.3 pct; Texas
Instruments  TXN.O  1.9 pct; Qualcomm  QCOM.O  1.6 pct
    ** QCOM and AMD among the major chipmakers due to report
results this week
    ** Entegris  ENTG.O  one of only 3 gainers on the 30-member
index; ENTG up 2.9 pct on its ~$3.83 bln deal to buy Versum
Materials  VSM.N   urn:newsml:reuters.com:*:nL3N1ZS42D
    ** Also gaining is Xilinx  XLNX.O , up 0.7 pct to hit new
record high; XLNX benefiting from early phases of 5G wireless
data networks  urn:newsml:reuters.com:*:nL1N1ZP01T
    ** Silicon Motion  SIMO.O  up 0.4 pct after confirming its
dividend  urn:newsml:reuters.com:*:nGNX2f0gBJ

 (Reporting by Savio D'Souza)
 ((RM:savio.dsouza.thomsonreuters.com@reuters.net))