Semiconductor stocks fell premarket Thursday as a major equipment supplier cited supply chain constraints during its earnings call.
The PHLX Semiconductor Index (SOXX) fell 4% on investor concerns that such limitations could potentially hurt chip sales. AI chip heavyweights Nvidia (NVDA) and Qualcomm (QCOM) fell more than 2%, while shares of Marvell (MRVL) and Intel (INTC) fell 4% and 5%, respectively.
Shares of chip developer Broadcom (AVGO) also fell more than 3%. Despite hitting an all-time high earlier this year, the stock is now flat year-to-date.
Meanwhile, memory and storage big names Micron Technology (MU) and Sandisk (SNDK) were also in red territory.
Shares of wafer equipment maker Lam Research (LRCX) fell as much as 10% after CFO Doug Bettinger said quarterly revenue guidance of $8.6 billion “would have been a little higher without some near-term supply chain constraints,” which the company is actively managing.
Other equipment makers Applied Materials (AMAT) fell 6%, while ASML (ASML) was down 3%.
238.01 -22.80 (-8.73%)
At 10:10:21 a.m. EDT. Open market.
LRCX ^SOX
Semiconductor stocks have been volatile in recent sessions as concerns over AI funding have weighed on the sector. Semiconductor companies have been the main beneficiaries of the development of artificial intelligence.
On Thursday, the entire stock market was expected to open lower due to rising oil prices, raising hopes that the Federal Reserve may need to continue tightening monetary policy this year.
Ines Ferre is a senior economics reporter for Yahoo Finance.
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