LRCX - AMD Intel lead chips lower as Q1 earnings gets set to move into high-gear

2023-04-24 13:00:17 ET

AMD ( NASDAQ: AMD ) and Intel ( NASDAQ: INTC ) were among the leading decliners in the semiconductor sector on Monday as investors waited for earnings season to kick into high gear.

Intel ( INTC ) shares fell 1.7% after a widely watched analyst said on Monday that the company's Sapphire Rapids server chips are seeing "lower-than-expected demand."

TF International Securities analyst Ming-Chi Kuo said the supply chain was told to cut orders for Intel's ( INTC ) latest server chip nearly 50% due to weak demand.

Intel ( INTC ) is set to report first-quarter results on April 27 after the close of trading.

AMD ( AMD ), which competes with Intel ( INTC ) in the server market, fell around 2% in sympathy, while Nvidia ( NVDA ) dropped 1.3% .

Investment firm UBS said on Monday that a number of data points suggest IT spending budgets saw "incremental pressure" in March, potentially a negative for the semiconductor industry.

In addition, UBS analyst Timothy Arcuri weighed in on expectations for a number of chip company results, including Texas Instruments ( NASDAQ: TXN ), ON Semiconductor ( NASDAQ: ON ) and KLA Corp. ( KLAC ).

Texas Instruments ( TXN ) fell 0.7% , while ON ( ON ) d ropped 0.4% . KLA Corp. ( KLAC ) was up fractionally, while competitors Applied Materials ( AMAT ) and Lam Research ( LRCX ) were modestly lower.

Micron Technology ( MU ) shares fell more than 2% even as the U.S. government pleaded with South Korea to not have its chipmakers fill the gap if China bans Micron, according to the Financial Times.

Last month, China said it was reviewing some of the memory chipmaker's products sold in the country.

Micron ( MU ) competes in the memory space market with South Korea's Samsung ( OTCPK:SSNLF ) and SK Hynix.

Arm, owned by Japanese tech conglomerate SoftBank ( OTCPK:SFTBY ) is working on building its own prototype semiconductors to show off their prowess, the FT added in a separate report, though the company has no plans to sell them.

Other semiconductor stocks were modestly lower on Monday, including Broadcom ( AVGO ), Analog Devices ( ADI ) and NXP Semiconductors ( NXPI ).

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