Shares of semiconductor and chip stocks are trading lower on Tuesday. Weakness may be due to weak guidance from Analog Devices (NASDAQ:ADI).
What To Know: Analog Devices reported fourth-quarter earnings before the open of the market on Tuesday. While the company beat top and bottomline estimates, with quarterly earnings of $2.01 per share exceeding expectations of $2.00 and revenue clocking in at $2.72 billion, above the analyst consensus estimate of $2.70 billion, first-quarter guidance was weak.
Analog Devices anticipates first-quarter revenue to be $2.5 billion, +/- $100 million, versus the $2.68 billion estimate. Also, earnings are estimated to be $1.70 per share, +/- 10 cents, versus the estimate of $1.90.
The disappointing guidance numbers may have caused the slump in other semiconductor and chip stocks on Tuesday, including Advanced Micro Devices, Inc. (NASDAQ:AMD), Intel Corporation (NASDAQ:INTC), Microchip Technology Incorporated (NASDAQ:MCHP), Marvell Technology, Inc. (NASDAQ:MRVL), Micron Technology, Inc. (NASDAQ:MU), ON Semiconductor Corporation (NASDAQ:ON), and QUALCOMM Incorporated (NASDAQ:QCOM).
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ADI, AMAT, AMD, INTC, MCHP, MRVL, MU, ON, QCOM Price Action: ADI stock was down 1.31% at $181.42 at the time of publication while AMAT stock was down 2.13% at $149.32, AMD stock was down 1.92% at $119.20, INTC stock was down 2.56% at $43.60, MCHP stock was down 2.35% at $82.72, MRVL stock was down 2.96% at $54.71, MU stock was down 2.66% at $76.53, ON stock was down 3.04% at $68.53, and QCOM stock was down 2.01% at $126.91, according to Benzinga Pro.
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