QCOM - Nvidia Broadcom lead chip decline as Barclays gets cautious on AMD Intel ahead of Q2

Nvidia ( NASDAQ: NVDA ) and Broadcom ( NASDAQ: AVGO ) led the chip sector lower on Monday after investment firm Barclays Capital cut the price targets on Advanced Micro Devices ( NASDAQ: AMD ) and Intel ( NASDAQ: INTC ) noting weakness in notebook computers during June.

Nvidia ( NVDA ) fell nearly 4% to $153.43 , while Broadcom ( AVGO ) slipped almost 3% to trade at $486.59 .

The shares of several other semiconductor companies also declined on Monday, as Qualcomm ( QCOM ), Skyworks Solutions ( SWKS ), Micron ( MU ) and Marvell ( MRVL ) lost between 1% and 3% in mid-day trading.

Barclays analyst Blayne Curtis lowered his price target on AMD ( AMD ) and Intel ( INTC ) to $85 and $40 from $115 and $45, respectively, pointing out that notebook production is now likely to fall 17% year-over-year, compared to a previous estimate of a drop of 12%.

"We are taking down estimates for both companies, but they may have to come down even further as these cuts are just starting," Curtis wrote in a note to clients, adding the firm sees "no reason to own these names until the size of the correction is better understood."

A consensus of analysts expect AMD ( AMD ) to earn $1.04 per share on $6.52B in revenue during the second-quarter, while Intel ( INTC ) is expected to earn 52 cents per share on $17.98B in sales.

AMD ( AMD ) and Intel ( INTC ) are slated to report second-quarter results on July 26 and July 28, respectively.

Advanced Micro Devices ( AMD ) fell slightly more than 2% to trade at $77.57, while Intel ( INTC ) fell around 1.5% to trade at $37.41 .

Smartphone chipmaker Qorvo ( QRVO ) slipped 1% after investment firm Cowen downgraded shares, citing weakness in the Android market.

Last month, investment firm Morgan Stanley restarted coverage on Advanced Micro Devices ( AMD ) shares, noting the semiconductor company is in a position to gain market share in both cloud servers and PCs .

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