Semiconductor Stocks Slide 4% as Lam Research Flags $8.6 Billion Guidance Hit
Updated
Updated · Yahoo Finance · Oct 22
Semiconductor Stocks Slide 4% as Lam Research Flags $8.6 Billion Guidance Hit
3 articles · Updated · Yahoo Finance · Oct 22
Summary
The PHLX Semiconductor Index fell 4% in premarket trading after Lam Research said near-term supply chain constraints capped its quarterly revenue outlook.
Lam shares dropped as much as 10% after CFO Doug Bettinger said the $8.6 billion guidance would have been higher without those constraints, which the company is still managing.
The warning spread across the sector: Nvidia and Qualcomm lost more than 2%, Broadcom more than 3%, Marvell 4%, Intel 5%, Applied Materials 6% and ASML 3%.
The selloff hit an already volatile chip group, where AI-funding worries have recently weighed on names that had been major beneficiaries of the artificial-intelligence buildout.
Broader market pressure added to the move, with U.S. stocks set to open lower as surging oil prices fueled expectations the Federal Reserve may keep tightening this year.