Intel Disaster Spells Catastrophe for Most Chip Stocks
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Intel Disaster Spells Catastrophe for Most Chip Stocks

Last week, Intel (NASDAQ:INTC) brought out its earnings report. The news wasn’t good, and investors didn’t take it well. The impact of Intel’s disaster earnings report reverberated throughout the chip stock sector, though not everyone was hit quite so hard by the news.

Two that took some of the biggest hits were AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA), with their share prices dropping as the negative halo effect from Intel spread throughout the sector. Both companies are poised to deliver earnings reports over the next few weeks, and there are already reports of some pain to potentially come for AMD. That could make the next few weeks of chip sector news particularly difficult.

However, there are some signs that the chip plunge isn’t hurting everyone. Texas Instruments (NASDAQ:TXN) will release its capital management plan later this week. Already, reports suggest it plans to build out production capacity over the long term, which suggests that fallout from the Intel losses may not be so universal.

Finally, a look at chip sector ETFs shows quite a bit of downward pressure today. The iShares Semiconductor Index (SOXX) was down noticeably in Monday afternoon trading. The VanEck Semiconductor ETF (SMH) also retreated, though not quite as far as iShares. Lastly, the SPDR S&P Semiconductor ETF (XSD) fell the farthest of the three.



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