STM - Micron Wolfspeed ON lead chips lower as sector awaits Broadcom results

Micron Technology ( NASDAQ: MU ), Wolfspeed ( NYSE: WOLF ) and ON Semiconductor ( NASDAQ: ON ) were among the largest declining stocks in the semiconductor sector on Thursday as the industry awaited first-quarter results from Broadcom ( NASDAQ: AVGO ).

Wolfspeed ( WOLF ) fell nearly 10% , while ON Semiconductor ( ON ) dropped more than 5% after Tesla ( TSLA ) said it had found a way to include less silicon carbide in its vehicles.

However, investment firm Roth MKM said that while Tesla's ( TSLA ) announcement would weigh on silicon carbide companies, including Wolfspeed ( WOLF ) stock, there is a "good chance" the claims may not materialize or the entire silicon carbide industry benefits.

STMicro ( STM ), which also produces silicon carbide, saw its shares fall more than 4% at mid-day.

Micron Technology ( MU ) shares fell nearly 4.5% on Thursday - its 10th decline in the past 11 trading sessions - after Wells Fargo noted the company said at a recent fireside chat that inventory write downs would likely occur when it reports fiscal second-quarter results, potentially impacting its book value.

Broadcom ( AVGO ) shares fell fractionally on Thursday ahead of its first-quarter report. Analysts expect the communication chipmaker to earn $10.17 per share and generate $8.9B in revenue.

Investment firm Raymond James resumed coverage on a number of chip stocks on Thursday.

AMD ( AMD ) and Nvidia ( NVDA ) shares fell 1.5% and 0.1%, respectively even as the firm slapped strong buy ratings on the pair.

Raymond James also gave outperform ratings to Intel ( INTC ), Marvell Technology ( MRVL ), Micron ( MU ), Qorvo ( QRVO ) and Western Digital ( WDC ). Broadcom ( AVGO ), Qualcomm ( QCOM ), Skyworks Solutions ( SWKS ) received market perform ratings, while ON ( ON ) was cut to market perform.

Last month, Goldman Sachs listed Wolfspeed ( WOLF ) among its favorite stocks for clients to own .

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