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Chip stocks underperform (SOXX -1.8%) thanks to an Intel downgrade, negative PC commentary, and...

Chip stocks underperform (SOXX -1.8%) thanks to an Intel downgrade, negative PC commentary, and worries about Samsung's light profit forecast. Citi's Glen Yeung, who just cut his Intel estimates and pulled Qualcomm (QCOM -1.7%) from his firm's Top Picks Live list, notes smartphone penetration in developed markets (where high-end sales are concentrated) has hit 75%, and frets about a "lack of new, innovative features" in high-end phones. SWKS -3.4%. MRVL -2.9%. SMTC -3%. AVGO -3.1%. ADNC -4.3%. SNDK -2.4%. TQNT -2.4%. ATML -2.5%. TSM -3.2%. Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG. (SIA sales data)
Comments (3)
  • I do not know about about QCOM, but down grading INTC at this time is nuts in my opinion. I remember owning JPM and some moron came out and down graded them. I said its time to bail. I been here before. Funny that was the only down grade on JPM, as the stock marched 3 points higher. Seemed to me like a ploy to cause a temporary stock drop, then march higher. Long INTC and not selling, too much to lose and more to gain. Good company, good divd. good for covered calls and puts at the same time.
    8 Jul 2013, 10:41 PM Reply Like
  • Agreed. Seems as suspicious to me as the KKD downgrade. These downgrades sometimes preceed catalysts that cause stocks to soar.
    9 Jul 2013, 09:43 AM Reply Like
  • lack of innovative features on new high end phones? Glen Yeung, you clearly failed to watch the $NOK 1020 launch last week
    15 Jul 2013, 10:21 AM Reply Like
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