Chip Stocks slide after Nvidia’s warning

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January 28, 2019 1:31pm NYSE:SMH

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From Tomi Kilgore: Semiconductor stocks took a premarket dive Monday, after Nvidia Corp.NVDA, -15.02% cut its fourth-quarter revenue and gross margin outlook, citing weakness in its gaming and datacenter businesses. Shares of Advanced Micro Devices Inc. AMD, -7.11% sank 7.3% ahead of the open, after being down 0.5% just prior to Nvidia’s warning, while Intel Corp.’s stock INTC, -1.46% dropped 2.0%, extended a loss of 0.8% just before the warning. Last week, Intel reported fourth-quarter total revenue, including data center revenue, that missed expectations. Micron Technology Inc. shares MU, -2.25% fell 5.4%, after being down 1.1% just before Nvidia’s warning. Nvidia’s stock plunged 15% in premarket trade, while the VanEck Vectors Semiconductor ETF SMH, -2.17% dropped 4.0%. The chip ETF has rallied 8.0% over the past three months, while the S&P 500SPX, -1.16% has edged up 0.2%.



The VanEck Vectors Semiconductor ETF (SMH) was trading at $94.57 per share on Monday afternoon, down $2.32 (-2.39%). Year-to-date, SMH has declined -3.31%, versus a -1.30% rise in the benchmark S&P 500 index during the same period.

SMH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #16 of 68 ETFs in the Technology Equities ETFs category.


This article is brought to you courtesy of MarketWatch.


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