Chip stocks dive after Broadcom rescinds guidance, questions second-half rebound amid coronavirus

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AMD, Nvidia and Skyworks decline more than 5% in late trading as Broadcom CEO wonders if demand will decline in U.S. and Europe.

Broadcom Inc. dropped its annual guidance Thursday afternoon and specifically blamed uncertainty in its semiconductor business through the rest of the year due to the spread of COVID-19, which appeared to push other chip stocks down in late trading.

Broadcom shares plunged more than 9% in late trading, as results came in lower than analysts expected. Other semiconductor companies appeared to feel pain as well, which accelerated after Tan laid the blame on potential chip-sales declines in the second half. At an analyst-day event last week, AMD Chief Executive Lisa Su maintained the company’s revenue guidance for the current quarter despite the spread of COVID-19. She said that the chip maker was back to “normal supply capacity” after the initial spread of the coronavirus in China had extended the Lunar New Year holiday and disrupted manufacturing in the company for longer than expected.Tan’s commentary eventually focused less on manufacturing and supply than demand, however.

 

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