Xilinx, Juniper spark chip stock selloff


Among the year's best tech performers, chip stocks are selling off (SOXX -1.8%) on an up day for the Nasdaq following weak numbers from FPGA giant Xilinx (XLNX -14.5%).

Xilinx missed FQ1 revenue estimates by over $18M, and also guided for FQ2 revenue to be well below consensus. The company blamed the FQ1 shortfall on soft defense and wireless sales. BMO and BofA/Merrill have downgraded Xilinx; the former thinks Xilinx's 28nm share might be peaking.

Xilinx stated on its CC (transcript) the wireless weakness was mostly due to soft 28nm chip sales to Chinese 4G base station vendors; Chinese 4G rollouts have long been viewed as a catalyst for both Xilinx and Altera (ALTR -4.7%). Aerospace/defense sales were hurt by program timing issues.

Meanwhile, switch/router vendor Juniper offered light Q3 guidance to go with a Q2 beat. The company noted on its CC (transcript) "market dynamics" for U.S. carriers, including M&A activity, are affecting project rollouts.

Also: Analog/mixed-signal IC vendor Linear (LLTC -4.1%) is selling off in spite of beating FQ4 estimates and guiding in-line (8%-11% Y/Y FQ1 rev. growth vs. 9.1% consensus).

Notable decliners: FSL -5.3%. IDTI -6.4%. EZCH -3.3%. PMCS -4.3%. LSCC -6.8%. CAVM -4.7%. SMTC -4.1%. ATML -3.2%. TQNT -3.1%. RFMD -2.9%. IRF -2.9%.

Qualcomm, NXP, TriQuint, and Cirrus Logic report after the bell.

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

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Comments (2)
  • Stock Market Mike
    , contributor
    Comments (3510) | Send Message
     
    Why is SWKS down? They're doing fine in China. Nearly 40% growth....

     

    -Mike
    23 Jul 2014, 12:42 PM Reply Like
  • Cory Streater
    , contributor
    Comments (45) | Send Message
     
    SWKS was up 17%, since their earnings call, as of the market open this morning. Even under the best of circumstances, there is bound to be some profit taking. In addition, historically a 1.5% drop isn't all that unusual for SWKS, particularly on a bad day for the industry as a whole.
    23 Jul 2014, 06:34 PM Reply Like
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