After chipmaker Advanced Micro Devices Inc. revived fears about the upcoming earnings season, technology stocks are facing more pain, as third-quarter sales were softer than expected.
AMD blamed its disappointing preliminary results on weakness in the personal computer market, sending its shares and those of other companies in the sector lower in postmarket trading. AMD, Nvidia Corp. Intel Corp., and Microchip Technology Inc., were among chipmakers down more than 2%, while HP Inc. and Dell Technologies Inc. also fell.
The Santa Clara, California-based company spokesman said that the company's profit dropped for the first time since 2019, highlighting the depth of a global PC and memory chip downturn. Before erasing losses, Samsung shares fell by as much as 2%.
Futures tracking the tech-heavy Nasdaq 100 Index fell as much as 0.6% during early trading hours in Asia. According to Tina Teng, an analyst with CMC Markets, futures may be slightly changed ahead of Friday s US monthly payrolls data due to weak demand and supply chain issues in the semiconductor sector.
The investors are bracing for a difficult earnings season because of the rising risk of a recession with inflation and the strong dollar eating into profit margins. Analysts have trimmed 2023 profit estimates for technology companies at a faster rate than the broader market, but most expect further cuts if results don't meet expectations.
Until the Shareholders Get Paid, none Musk Won t own Twitter Until the Shareholders Get Paid