Why Semiconductor And Chip Stocks Fell Today

Shares of semiconductor and chip stocks are trading lower on Tuesday. Weakness may be due to weak guidance from Analog Devices ADI.

What To Know: Analog Devices reported fourth-quarter earnings before the open of the market on Tuesday. While the company beat top and bottomline estimates, with quarterly earnings of $2.01 per share exceeding expectations of $2.00 and revenue clocking in at $2.72 billion, above the analyst consensus estimate of $2.70 billion, first-quarter guidance was weak.

Analog Devices anticipates first-quarter revenue to be $2.5 billion, +/- $100 million, versus the $2.68 billion estimate. Also, earnings are estimated to be $1.70 per share, +/- 10 cents, versus the estimate of $1.90.

The disappointing guidance numbers may have caused the slump in other semiconductor and chip stocks on Tuesday, including Advanced Micro Devices, Inc. AMD, Intel Corporation INTC, Microchip Technology Incorporated MCHP, Marvell Technology, Inc. MRVL, Micron Technology, Inc. MU, ON Semiconductor Corporation ON, and QUALCOMM Incorporated QCOM.

Related Link: Why Safe And Green Development Stock Gained Today

ADI, AMAT, AMD, INTC, MCHP, MRVL, MU, ON, QCOM Price Action: ADI stock was down 1.31% at $181.42 at the time of publication while AMAT stock was down 2.13% at $149.32, AMD stock was down 1.92% at $119.20, INTC stock was down 2.56% at $43.60, MCHP stock was down 2.35% at $82.72, MRVL stock was down 2.96% at $54.71, MU stock was down 2.66% at $76.53, ON stock was down 3.04% at $68.53, and QCOM stock was down 2.01% at $126.91, according to Benzinga Pro.

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