Chip stocks slump again after SanDisk warns; TSMC remarks in
focus
The Philadelphia Semi Index (SOXX -1.8%) is now down 6% over
the last two days. Today's losses come after NAND flash giant SanDisk issued a
Q1 warning and withdrew its full-year guidance - price pressure, soft
enterprise sales, and delayed product qualifications were all blamed.
Meanwhile, some are partly blaming yesterday's big selloff
on cautious remarks from TSMC (has an estimated ~50% global foundry share) at a
Credit Suisse conference. CS analyst Randy Abrams reports TSMC (NYSE:TSM)
has observed "a slowdown in the past 4-5 weeks due to US$ strength
impacting European and emerging market purchasing power," and that
inventories "will be a few days above seasonal exiting 1Q15." Pac
Crest downgraded TSMC two weeks ago on inventory concerns.
Following an Asian trip, Susquehanna's Chris Caso has argued
there isn't too much to be alarmed about, though he admits forex could be an
issue. "There’s mixed signals here and there. We weren’t picking up
anything that was tremendously different across the supply chain. PCs were the
weakest area. That’s really not a surprise."
RF chipmakers Skyworks (SWKS -4.6%) and Qorvo (QRVO -2.1%),
among 2014's best performers, are again selling off; peer Avago is off only
slightly. Also seeing further profit-taking are Ambarella (AMBA -3%), NXP (NXPI
-3.6%), Freescale (FSL -2.8%), Cavium (CAVM -3.2%), and STMicroelectronics (STM
-4.5%).
Among equipment makers, Axcelis (ACLS
-2.9%), Aixtron (AIXG -3.6%), Veeco (VECO
-3%), and Kulicke & Soffa (KLIC -2.5%)
are declining. A selloff in European equities could be affecting Aixtron,
NXP/Freescale, and STMicro.
Chip ETFs: SMH, XSD, PSI,
SOXL, USD, SOXS, SSG
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