- Shares of chips fell on the fifth consecutive day on Wednesday.
- The sector was one of the hardest hit during the sale.
- Look Nvidia, Intel and AMD trade here in real time.
Chip massacre lasted for the fifth consecutive day on Wednesday, making it one of the most difficult sectors during the recent sale.
The Philadelphia Semiconductor Index fell 4.4%, losing up to 9.5% compared to a five-day loss.
Since early October, AMD stocks have accumulated more than 18%, while rival Nvidia has lost 15%. The intense Nasdaq 100 index fell by 7%. Meanwhile, Intel has exceeded expectations, dropping only 3%, which opportunity it can begin to accelerate the production of its 10-nanometer processors faster than expected.
Heavy selling in space comes as investors began ordering some of the huge profits they made this year. Even after October sales, AMD grew by 127%, and Nvidia – by 22%.
In the past few days, the semiconductor industry has been under pressure, as demand in the PC market has taken surprise by surprise. In the near future, analysts predict more pressure when the sector entering "target =" _ blank "cyclical downturn".
According to Bloomberg News, Morgan Stanley, Raymond James, Deutsche Bank cut their profit estimates for the eight chip stocks last week. "We are reducing the scores on most of the space", Raymond James Analyst Chris Caso said CNBC.
RBC Capital Markets analyst Amit Daryanini lowered Intel's target price to $ 55 from $ 57, predicting that the chip deficit will affect fourth-quarter earnings. He lowered his estimates for Intel's fourth quarter profit to $ 1.08 per share, compared with Wall Street estimates of $ 1.09.
And Barclays lowered Intel's rating to "underweight" from "equal weight" and lowered the target price to $ 38 from $ 53 after predicting a similar drop in profits. Intel shares fell 12% in the last three months, as investors estimated the deficit.
Since Intel was expecting to release fewer chips, the shortage benefited both AMD and Nvidia when their cryptobusiness revenues declined.