Chipmakers Tumble Amid ‘High Bar’ for Qualcomm’s Earnings

(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.

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.

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