cryptoTech Stocks Set for More Pain as AMD Revives Earnings Fears

Tech Stocks Set for More Pain as AMD Revives Earnings Fears

(Bloomberg) — Expertise shares are dealing with extra ache after chipmaker Superior Micro Units Inc. revived fears in regards to the upcoming earnings season after warning that third-quarter gross sales have been softer than anticipated.

AMD blamed disappointing preliminary outcomes on weak point within the private laptop market, sending its shares and people of different corporations concerned within the sector decrease in postmarket buying and selling. AMD, Nvidia Corp., Intel Corp. and Microchip Expertise Inc. have been amongst chipmakers down greater than 2%, whereas laptop makers HP Inc. and Dell Applied sciences Inc. additionally fell.

The Santa Clara, California-based firm’s announcement was adopted by a report from South Korea’s Samsung Electronics Co. that its revenue dropped for the primary time since 2019, underscoring the depth of a worldwide PC and reminiscence chip downturn. Samsung shares slid as a lot as 2% earlier than erasing losses.

Futures monitoring the tech-heavy Nasdaq 100 Index slipped as a lot as 0.6% throughout early buying and selling hours in Asia, earlier than recovering. Weak demand and provide chain points within the semiconductor sector might have already been priced in, leaving futures little modified forward of Friday’s US month-to-month payrolls information, in response to Tina Teng, an analyst with CMC Markets.

Buyers are bracing for a probably troublesome earnings season amid rising danger of a recession with inflation and the robust greenback consuming into revenue margins. Analysts have trimmed 2023 revenue estimates for expertise corporations at a quicker price than the broader market, although most count on additional cuts if outcomes disappoint.

(Provides analyst remark in fourth paragraph.)

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