- Semiconductor stocks could head another 4-7% lower with several factors weighing on the sector, BofA Merrill Lynch says.
- The SOX chip index is still positive for 2018, but is off 11% since March 12 and has further down to go, analyst Vivek Arya writes. Various issues including rough earnings, trade fights and market volatility have "soured the mood." (h/t Bloomberg)
- Running lower so far today: AMD -1%; INTC -0.6%; STM -0.8%. Nvidia (NASDAQ:NVDA) is rebounding, up 0.8%.
- That might play itself out by the time Apple (AAPL -3.1%) reports earnings on May 1, considering the Taiwan Semi-led sell-off under way now.
- Meanwhile, Arya has trimmed estimates and price targets on Broadcom (AVGO -1.5%, Buy-rated but price target down to $300 from $340); Skyworks Solutions (SWKS -2.2%, Buy-rated and price target cut to $105 from $120); Teradyne (TER -1.1%, Buy-rated and price target cut to $54 from $58); and Cirrus Logic (CRUS -2.3%, Underperform-rated and target cut to $34 from $41).
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