Chip stocks extend decline as Arm and Qualcomm earnings show mobile business under pressure

TechFlow news, Nov. 6: According to Investor's Business Daily, chip stocks continued to decline after U.S. election results and earnings reports from Arm, Qualcomm and other companies. The Philadelphia Semiconductor Index fell 10.1% intraday on Thursday. The report noted that election results showed support for policies restricting the construction of new AI data centers, and Wall Street analysts lowered price targets for several AI infrastructure-related chip companies.

Arm's fiscal second-quarter revenue, profit and guidance all beat expectations, but its fiscal third-quarter royalty revenue missed expectations, partly due to weak smartphone sales. Qualcomm's fiscal fourth-quarter results and current-quarter guidance were slightly above market expectations, but its smartphone chip sales were impacted by weak market conditions.

For other chip companies, Astera Labs' third-quarter results and fourth-quarter guidance both exceeded expectations; Coherent's fiscal first-quarter results beat expectations and it raised its outlook.

Source: TechFlow