INSUBCONTINENT EXCLUSIVE:
fell as much as 7.4% after third-quarter revenue came in below expectations, while software giant Microsoft Corp
lost 8.1% following a disappointing revenue forecast
Texas Instruments Inc., a bellwether for the semiconductor industry, tumbled 6.1% after giving a forecast that was weaker than analyst
estimates.
Adding to the gloom, South Korean chipmaker SK Hynix Inc
reported a 60% decline in profit and said it would cut capital expenditures by more than half
to its highest level in a month during regular trading
The Invesco QQQ exchange traded fund, which tracks the tech-heavy benchmark, dropped as much as 2.1% in after-hours trading while Amazon.com
fell 4.9%.
The selloff in extended trading was broad-based
Those that derive sales from online advertising followed Alphabet lower, with Meta Platforms Inc
dropping more than 4% each
Among software companies moving in the wake of Microsoft, Datadog Inc
tumbled 7%, Snowflake Inc
fell 5% and Salesforce Inc
In the chip space, Analog Devices Inc., ON Semiconductor Corp., and Marvell Technology Inc
also dipped.
Signs of weakness were widespread in the financial results
Microsoft posted its weakest quarterly sales growth in five years, throttled by the surging United States dollar, slumping PC demand and
faltering advertising revenue
crimped growth in digital advertising.
Pessimism is growing in the semiconductor industry, which had been one of the hottest sectors
Texas Instruments, whose chips go into everything from home appliances to missiles, saw its shares tumble after its weak forecast signaled
that the chip slump is spreading beyond computing and phones into other businesses.
Hynix is joining fellow memory makers Micron
in slashing production plans as chip prices tumble
