Micron, KLA-Tencor warnings send chip-related stocks to worst day in more than two months

Micron, KLA-Tencor warnings send chip-related stocks to worst day in more than two months

Chip-related stocks bought pummeled for his or her worst day in more than two months Thursday after market outlooks from just a few key gamers proved to be weaker than beforehand forecast.

The PHLX Semiconductor Index

SOX, -2.67%

 fell 2.7% Thursday for its worst one-day share drop since June 25, when the index dropped 3.1%. In comparability, the S&P 500 index

SPX, -0.37%

 declined zero.four% and the Nasdaq Composite Index

COMP, -0.91%

 completed down zero.9%.

Hardest hit have been shares of Micron Technology Inc.

MU, -9.87%

The inventory dropped 9.9% to shut at $44.65 after the corporate, at a Citigroup convention, mentioned prices of NAND chips, or flash reminiscence chips used in USB drives and smaller units, decreased in the third quarter. Shares of Micron are actually 30% off their excessive of $64.66 set in late May.

Shares of chip-making tools corporations have been additionally savaged after KLA-Tencor Corp.

KLAC, -9.72%

 on the similar convention, forecast that a rebound in chip shipments for the second half of 2018 would seemingly not be as sturdy as anticipated as not too long ago as six weeks in the past. KLA-Tencor shares dropped 9.7% to end at $107.28, whereas shares of Lam Research Corp.

LRCX, -6.97%

 dropped 7% to shut at $160.05 and Applied Materials Inc.

AMAT, -5.25%

 shares fell 5.three% to $40.27.

The drop comes after the chip-equipment sector posted fairly strong earnings in late July and forecast that chip-demand weak spot would backside out in the September-ended quarter.

Meanwhile, Advanced Micro Devices Inc.

AMD, -2.35%

 shares backed off 12-year highs, declining 2.four% to end at $27.84 because the chip maker introduced a brand new Zen-based Athlon desktop processor, with Radeon Vega graphics, for PC customers.

AMD and Micron rank because the third and fourth most actively traded stocks, respectively, on the S&P 500 by common day by day quantity over the previous 52 weeks, in accordance to FactSet information.

Other chip-related stocks down three% or more on the day included Entegris Inc.

ENTG, -8.23%

, Marvell Technology Group Ltd.

MRVL, -4.98%

, MKS Instruments Inc.

MKSI, -8.21%

, Qorvo Inc.

QRVO, -5.71%

, ON Semiconductor Corp.

ON, -3.07%

, Cypress Semiconductor Corp.

CY, -3.79%

 and Teradyne Inc.

TER, -3.23%


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