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Semiconductor stocks fell in premarket trading on Thursday as a major equipment supplier cited supply chain constraints on its earnings call.
The PHLX Semiconductor Index (SOXX) tumbled 4% amid investor concerns that such limitations could potentially hurt chip sales. AI chip heavyweight Nvidia (NVDA) and Qualcomm (QCOM) dropped more 2%, while Marvell (MRVL) and Intel (INTC) shares were down 4% and 5%, respectively.
Chip developer Broadcom (AVGO) shares also fell more than 3%. Despite reaching an all-time high earlier this year, the stock is now flat year to date.
Meanwhile, memory and storage highfliers Micron Technology (MU) and Sandisk (SNDK) were also in red territory.
Shares of the wafer equipment maker Lam Research (LRCX) fell as much as 10% after CFO Doug Bettinger said the quarterly revenue guidance of $8.6 billion “would have been a bit higher if not for some near-term supply chain constraints,” which the company is actively managing.
Other equipment makers Applied Materials (AMAT) fell 6%, while ASML (ASML) declined 3%.
237.73 -23.08 (-8.85%)
As of 10:22:31 AM EDT. Market Open.
LRCX ^SOX
Semiconductor stocks have been volatile in recent sessions as concerns over AI funding have weighed on the sector. Semiconductor companies have been a key beneficiary of the artificial intelligence build-out.
On Thursday, the overall stock market was set to open lower as oil prices surged, raising expectations that the Federal Reserve may have to keep tightening monetary policy this year.
Ines Ferre is a senior business reporter for Yahoo Finance.
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