Semiconductor Chip Stocks Dip after Warnings
US semiconductor stocks fell across the board as STMicroelectronics Inc. (Geneva, Switzerland) reported that first-quarter results would fall short of expectations because of falling product prices and currency fluctuations. Texas Instruments Inc. (Dallas, TX), which competes against STMicroelectronics in several markets, was the hardest hit, falling $0.90, or 5.1 percent, to $16.85.
Meanwhile, all 18 members of the benchmark Philadelphia Stock Exchange semiconductor index fell. The index represents several branches of the industry, from makers of tools that build microchips to manufacturers of customized, high-end chips. Overall, the index fell two percent to 312.75 in morning trade.