Tech Stocks Slump on Earnings Misses and Chip Stock Crash

The technology sector (NYSE:XLK) is down -.54% and underperforming compared to the wider market today as early earnings reports from chip and semiconductor stocks are falling short of analyst targets. Yesterday Novellus Systems (NASDAQ:NVLS) took a steep hit, dropping more than 11% in after hours trades on news Novellus Systems missed its second quarter revenue estimates, fanning fears of a poor FQ2 due to downward revisions in future guidance. Needham Analyst Edwin Mok warns that the company may usher in a bear-minded tech outlook, “with disappointing guidance, based on increased cautiousness at leading customers, especially foundries, and falling utilization.”

Shares off Microchip Technology Inc. (NASDAQ:MCHP) also plummeted today, down -12.73% on news that the company lowered its earnings outlook for the first quarter. Analysts at UBS (NYSE:UBS), Citadel Securities, and others were quick to cut their outlook on the stock, setting lower price targets as well. Semiconductor stocks are taking a hit across the board today, with the Philadelphia Semiconductor Index (SOX) falling 2.81% in trading so far. Here’s a look at how a panel of popular chip stocks are faring today:

Intel (NASDAQ:INTC) down -1.12%, Applied Materials (NASDAQ:AMAT) down -2.85%, Texas Instruments (NYSE:TXN) down -3.08%, Analog Devices Inc. (NYSE:ADI) down -4.98%, ON Semiconductor Corp. (NASDAQ:ONNN) down -7.76%, Fairchild Semiconductor Intl. (NYSE:FCS) down -5.74%, KLA-Tenor Corp. (NASDAQ:KLAC) down -2.96%, and Maxim Integrated Products (NASDAQ:MXIM) down -6.33%.