Qualcomm, AMD, Arm lead chips lower as investors await Intel results

Semiconductor stocks were broadly lower on Thursday despite better-than-expected results and guidance from industry stalwarts earlier in the week.

Qualcomm (NASDAQ:QCOM) shares fell nearly 10% after the San Diego chipmaker reported fiscal third-quarter results and fourth-quarter guidance that topped analysts estimates. However, the company also gave some conservative commentary about the smartphone market for the rest of the year, which seems to have spooked investors.

Despite that, several Wall Street firms said there are “multiple” ways for the stock to move higher.

AMD (NASDAQ:AMD) shares fell more than 6%, erasing Wednesday’s gains and then some, after it reported better-than-expected second quarter results and guidance. However, analysts said they were unsure where the company goes from here.

Nvidia (NASDAQ:NVDA) shares fell 5% and erased some of Wednesday’s gains that were likely related to AMD’s results and a report that the U.S. government may exempt allies that export vital chip making parts — including Japan, the Netherlands and South Korea — from an upcoming export control expansion, reducing the impact of the rule.

Morgan Stanley also put Nvidia back on its top picks list after the recent sell-off in the Jensen Huang-led chipmaker.

Intel (INTC), which competes with AMD and Nvidia, is slated to report second-quarter results after the close of trading. Shares fell 4.8% in midday trading.

Arm Holdings (NASDAQ:ARM) tumbled nearly 17% after it reported fiscal first-quarter results and guidance. Several Wall Street analysts tried to defend the British chip designer.

Also seeing sharp declines on Thursday were Micron (MU), Broadcom (AVGO), Texas Instruments (TXN), Analog Devices (ADI), and ON Semiconductor (ON), each of which fell 2.5% or more.

Qorvo (QRVO) and Skyworks Solutions (SWKS) extended their losses from Wednesday, down 5.8 and 2.9%, respectively. Both companies generate a significant portfion of their revenue from Apple (AAPL), which is slated to report its quarterly results after the close of trading.

Apple shares fell 1.5% on Thursday.