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Chip stocks take a hit after Broadcom earnings

Jeremy C. Owens

Several semiconductor companies saw shares decline in after-hours trading Thursday following Broadcom Inc.'s earnings report, which suggested a second-half rebound for chips looks less likely. Among stocks falling more than 1% immediately after Broadcom reported were Texas Instruments Inc. , Xilinx Inc. , Skyworks Solutions Inc., Qualcomm Inc. , Qorvo Inc. and Nvidia Corp. Larger chip makers like Intel Corp. , Advanced Micro Devices Inc. and Micron Technology Inc. fell by smaller amounts, closer to 0.5%, though action was jagged amid high volume for the extended session. Broadcom cut its fiscal-year forecast in its second-quarter report after trading closed Thursday, and Chief Executive Hock Tan said in a statement that he sees "a broad-based slowdown in the demand environment." "As a result, our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year," Tan said. Chip companies earlier this year said that a slowdown would reverse by the second half of the year, but returns since then have created doubts about the timeline. Broadcom shares were down about 7% in after-hours trading.