Semiconductors have been a beacon of stock-market outperformance for months, even years.
But recent headwinds have started to pile up, putting unprecedented pressure on the sector. And many of the issues facing chipmakers can be tied into problems facing the broader market.
As the stock market melts down, a great deal of attention is being paid to the obvious culprits: banks, oil, and President Donald Trump’s continued insistence upon ratching trade tensions higher.
But in a less publicized corner of the equity market, selling pressure has raged, driven by an unfortunate confluence of factors. We’re referring to the previously dominant semiconductor sector, which can’t seem to sidestep a seemingly endless barrage of negative headlines.
The most glaring example on Thursday was the controversial arrest of Huawei CFO Meng Wanzhou. The news rippled through global equities as traders braced for more trade-war tensions. And since Huawei is among the world’s biggest producers of smartphones, the chipmaker supply chain took a beating.
In terms of specific semiconductor companies, $23 billion Lam Research added to industry-wide pressure on Thursday after its CEO announced he was resigning. Martin Anstice agreed …read more
Source:: Businessinsider – Finance