{"id":51669,"date":"2017-11-10T06:53:49","date_gmt":"2017-11-10T06:53:49","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=51669"},"modified":"2017-11-10T06:56:55","modified_gmt":"2017-11-10T06:56:55","slug":"chip-stocks-tumble-as-top-performer-nvidia","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/chip-stocks-tumble-as-top-performer-nvidia.html","title":{"rendered":"Chip stocks tumble as top performer Nvidia"},"content":{"rendered":"

Chip stocks tumble as top performer Nvidia<\/span><\/strong><\/span><\/h2>\n

Chip stocks tumble as top performer Nvidia set to report results: hares of chipmakers slumped on Thursday ahead of a quarterly earnings report from Nvidia Corp (NVDA.O), the star performer of the high-flying sector over the past year.<\/span><\/p>\n

The Philadelphia Semiconductor index .SOX dropped 2.96 percent and was on track for its steepest one-day decline since June, with all 29 of its components in negative territory.<\/span><\/p>\n

The broader stock market also fell, with the benchmark S&P 500 .SPX down 1 percent amid investor concerns that Republican lawmakers may not be able to pull off promised cuts to corporate taxes.<\/span><\/p>\n

Semiconductor companies have spearheaded the rally in technology stocks this year. With the chip index up more than 40 percent in 2017 and the year-end in sight, many portfolio managers are reluctant to give up gains.<\/span><\/p>\n

\u201cThere\u2019s really no reason to be overly hitting the panic button like this,\u201d said Wedbush trader Joel Kulina. \u201cBut a lot of people had a terrible 2016, so investors have a mind frame that they\u2019ve got to preserve their very healthy year-to-date gains.\u201d<\/span><\/p>\n

Citi on Thursday said in a report it remained positive on the sector, with top picks including Texas Instruments (TXN.O) and Applied Materials (AMAT.O).<\/span><\/p>\n

But Citi analyst Christopher Danely also cautioned investors to be vigilant amid warning signs, including potential declines in order lead times or demand from semiconductor customers.<\/span><\/p>\n

Graphics chip specialist Nvidia (NVDA.O), a Wall Street favorite in recent years, fell 3.50 percent ahead of its quarterly report after the bell, while rival Advanced Micro Devices (AMD.O) dropped 5.03 percent.<\/span><\/p>\n

Investors sold both of those stocks after Intel (INTC.O) on Wednesday said it hired Raja Koduri, a chief architect from AMD\u2019s graphics team, in a push to expand its own offering of graphics chips.<\/span><\/p>\n

Analysts, on average, expect Nvidia to post an 18-percent increase in revenue for the quarter through October as it expands further into data centers demand for its chips from cryptocurrency miners.<\/span><\/p>\n

Nvidia\u2019s stock has nearly tripled over the past 12 months, making it the top performer in the semiconductor index and the S&P 500.<\/span><\/p>\n

Nvidia options activity implied traders expect a 7.7-percent swing in either direction for the stock by Friday, according to Trade Alert data. Options trading sentiment was leaning slightly toward defensive bets on the stock.<\/span><\/p>\n

Broadcom (AVGO.O), which on Monday made an unsolicited $103 billion bid for Qualcomm Inc (QCOM.O), fell 3.1 percent. Qualcomm was down 1.63 percent.<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-usa-chips-stocks\/chip-stocks-tumble-as-top-performer-nvidia-set-to-report-results-idUSKBN1D92RP<\/span><\/p>\n

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