(Bloomberg) — Shares of semiconductor companies fell on Thursday, as post-earnings declines from high-profile names like Intel and Lam Research made the industry an outlier on an otherwise positive session for technology stocks.
The Philadelphia Stock Exchange Semiconductor Index fell 3%, compared with a gain of 0.8% in the S&P 500 Information Technology Sector index. The Nasdaq 100 rose 0.5% but was off its highs of the session. Software stocks were a bright spot after strong results from ServiceNow followed Microsoft earlier in the week.
Intel fell 6% after it gave an earning outlook that was below expectations, pressured by investments it is making in its turnaround plan. Analysts continue to be skeptical about Intel’s prospects over the longer term; Bernstein wrote that the stock, which has long underperformed, is “likely to remain in purgatory.”
Lam Research fell 4.3% after its own forecast, which showed a negative impact from supply chain conditions. While analysts see this headwind as temporary, the forecast weighed on peers; Applied Materials fell 2.6% on Thursday and KLA Corp. declined 3.4%.
Among other stocks, semiconductor manufacturing company MKS Instruments dropped 8.4% after its first-quarter outlook missed expectations, with the firm noting industrywide supply constraints. Among its peers, Entegris fell 4.1%, Onto Innovation dropped 1.8% and FormFactor lost 2.8%.
Chip-testing company Teradyne plummeted 28% after its forecast, its biggest one-day percentage drop since October 2000. U.S.-listed shares of Silicon Motion dropped 5% after its first-quarter outlook was seen as weak, though Wall Street is more positive on the full-year guide.
On the upside, Seagate Technology Holdings rallied 16% after its results and outlook prompted Summit Insights Group to upgrade the stock.
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