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Why Semiconductor Stocks Are Trading Lower On Friday

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Shares of semiconductor companies are on watch Friday following FBR Capital's removal of ON Semiconductor Corp (NASDAQ: ONNN) from its “Top Picks” list.

FBR stated that it is assuming a "more defensive" tone in its semiconductor coverage following Microchip Technology's (NASDAQ: MCHP) second quarter warning announcement on Thursday and cautious industry-wide comments.

"The month of September is usually a strong month for our revenue after the summer holiday period," Steve Sanghi, Microchip's CEO said in a statement. "This time, the September sales did not materialize to our expectations. The revenue miss was led by China where the September quarter is traditionally the strongest."

"We believe that another industry correction has begun and that this correction will be seen more broadly across the industry in the near future," Sanghi also stated.

Shares of ON Semiconductor were trading lower by 9.1 percent at $7.61 Friday morning. Shares of Microchip were trading lower by 13.46 percent at $39.41.

Shares of the Market Vectors Semiconductor ETF (NYSE: SMH) were trading lower by 5 percent at $46.39.

Latest Ratings for ONNN

DateFirmActionFromTo
Apr 2015DowngradesNeutralSell
Feb 2015MaintainsBuy
Feb 2015MaintainsHold

View More Analyst Ratings for ONNN
View the Latest Analyst Ratings

Posted-In: FBR Capital MICROCHIP ON Semiconductor semiconductorsAnalyst Color News Analyst Ratings Movers

 

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Semiconductors Moving Lower Amid Microchip Lowered Guidance

UPDATE: Jefferies Initiates Coverage On EMC