The semiconductor sector was headed for broad and sharp declines Thursday, after disappointing earnings reports from Nvidia Corp. (NVDA) and Applied Materials Inc. (AMAT). The VanEck Vectors Semiconductor ETF (SMH) dropped 3.7% in premarket trade, with all components trading losing ground. The biggest loser was Nvidia's stock, which plunged 18% toward a 14-month low, after the company reported late Thursday ( ) earnings that missed expectations and provided a downbeat outlook. The company also said the inventory issues that weighed on results was also affecting its competitors, and that send Advanced Micro Devices Inc.'s stock (AMD) down 7.3% premarket. Applied Materials shares shed 9.5% after the chip equipment maker provided late Thursday disappointing guidance ( ). Elsewhere, Intel Corp.'s stock (INTC) slumped 1.2% and Micron Technology Inc. shares (MU) slid 3.5%. Meanwhile, S&P 500 futures dropped 0.5%. Over the past three months, the chip ETF has lost 7.4% through Thursday, while the S&P 500 has lost 3.9%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 16, 2018 09:15 ET (14:15 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.