Chipmaker Earnings Estimates Fall at Fastest Pace Since 2008
- Analysts have cut US chipmaker profit estimates 16% since June
- ‘Strap on a helmet’ as selloff to worsen: Citigroup analyst
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A string of warnings on semiconductor demand from the likes of Micron Technology Inc. and Samsung Electronics Co. is forcing analysts to slash earnings forecasts at the fastest pace since 2008.
Having gone from boom to bust in less than a year, the semiconductor industry is now bracing for a storm that’s expected to hit everyone, from producers of memory chips to semiconductor-equipment makers and manufacturers of computer processors. The benchmark Philadelphia Semiconductor Index has fallen 42% this year, on track for its worst annual performance in 14 years as demand falls off a cliff.