Nvidia lowers its revenue guidance for the fourth quarter of 2018 sending its shares tanking downwards by 14%. Other chip stocks followed suit. Analysts say Apple’s imminent earnings report means it could get much worse for chipmakers.
The iPhone maker has said it won’t publish an actual number of units sold. Guidance from CEO Tim Cook earlier in January already shows unit sales may have fallen. If Apple’s revenue report reflects this, then, says O’Leary: We’re going to be light on units, it’s going to make grown men weep in the semi space because the multiplier effect is going to be brutal.
It could mean Apple suppliers, like Broadcom and Analog Devices, join Nvidia in a downward spiral. Broadcom shares have fallen 0.12% during trading today, Analog Devices stock is down 0.34%.