(Bloomberg) — Semiconductor stocks slumped on Thursday, with Qualcomm Inc. slipping even after the biggest maker of smartphone chips reported earnings and forecasts that beat estimates.
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Qualcomm fell short of projections in certain categories, including chips for cars, the Internet of Things and radio-frequency components. Supply woes also hampered its ability to take advantage of booming demand for phones.
Qualcomm shares fell 4.8% on Thursday, while the Philadelphia Stock Exchange Semiconductor Index dropped 4.6%.
“The numbers/guide are both pretty solid and there’s not much to complain about,” wrote Vital Knowledge analysts, who cited recent gains in the stock as a possible factor behind the negative reaction to the report. Such a rally “makes for a high bar.”
Read more: Qualcomm Falls, But Analysts See Long-Term Strength: Street Wrap
Cowen analyst Matthew D Ramsay said that while Qualcomm’s beat and raise was “significant,” the results contained “a couple of nit-picks” with guidance for a below-seasonal June quarter potentially curbing enthusiasm.
Among other semiconductor names, Nvidia Corp. fell 5.1% and Advanced Micro Devices Inc. slid 2.2%. Micron Technology Inc. dropped 3% while Intel Corp. fell 2.5%. Qorvo Inc. shares sank 10% after its own results and forecast.
The tech-heavy Nasdaq 100 fell 4.2% on Thursday, dragged down by a record drop in shares of Meta Platforms Inc. after Facebook’s user base stalled last quarter.
(Updates to market close.)
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