Sector Update: Tech Stocks Sink Following AMD Sales Warning

Last Updated: Friday, October 7, 2022 3:56 PM | MT Newswires

Technology stocks added to their Friday decline, with the SPDR Technology Select Sector ETF (XLK) falling 4.2% while the Philadelphia Semiconductor Index was sliding 6.1% this afternoon.

In company news, Semtech (SMTC) fell 7.2% amid a weak session for semiconductor stocks and the chipmaker Friday pricing an upsized $300 million private placement of 1.625% convertible senior notes due 2027, adding an extra $250 million of the five-year notes to the deal above its original plan to issue $500 million of the debt securities.

GDS Holdings (GDS) fell over 10% after RBC Capital Markets cut its price target for the Chinese data center and colocation services by one-third to $22, citing foreign exchange, interest rate and other macro headwinds. The RBC analysts also reiterated their sector perform-speculative risk stock rating for the company.

AMD (AMD) dropped 8.4% after the chipmaker late Thursday said it likely generated around $5.6 billion in Q3 revenue, up 29% from year-ago levels but still lagging its prior forecast expecting between $6.5 billion to $6.9 million in revenue for the three months ended Sept. 30. Analysts, on average, had been expecting $6.69 billion in Q3 revenue at AMD, which blamed a slowdown in the PC market and significant inventory corrections throughout the PC supply chain.

AppLovin (APP) declined 6.5% after Needham began coverage of the software development platform company with a hold stock rating.

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