Chip stocks dive on bad earnings news

|By:, SA News Editor

Weaker-than-expected guidance from Broadcom, Altera, RF Micro, and STMicroelectronics has fueled a general selloff in chip stocks (SOXX -3.5%). Companies with strong mobile and/or telecom infrastructure exposure are seeing an outsized share of the damage.

The numbers call into question the strength of year-end demand from consumer electronics, enterprise hardware, and telecom equipment firms, and make a recent Wells Fargo downgrade of the sector look smart.

Notable decliners (aside from the reporting companies): CRUS -6%. SWKS -7.2%. TQNT -6.7%. AMD -4.1%. QCOM -2.4%. AMCC -4.4%. INVN -4.1%. FSL -5.5%. LSI -4.6%. NXPI -4.8%.CAVM -5.1%. ATML -5.2%. AVGO -4.2%. SIMO -3.8%  MXIM -3.2%.

Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG