Semi, IC Stocks Clobbered; Summit's Srini Sundararajan Provides Some Insight

Semiconductors stocks are tumbling on Wednesday.

The following stocks (among several others) are down at least 4 percent on Wednesday afternoon:

• Apple Inc. AAPL
• Linear Technology Corporation LLTC
• Skyworks Solutions Inc SWKS
• Analog Devices, Inc. ADI
• Qorvo Inc QRVO
• Cirrus Logic, Inc. CRUS
• Micron Technology, Inc. MU
• Exar Corporation EXAR
• M/A-COM Technology Solutions Hldgs Inc MTSI
• Avago Technologies Ltd AVGO

Other stocks plummeting within the segment are Maxim Integrated Products Inc. MXIM, down almost 3 percent, and NXP Semiconductors NV NXPI, down 2.6 percent.

Analysts at Benzinga were wondering if the tumble is related to Linear Tech’s bad quarter (reported on Tuesday night) and the subsequent decline in the stock price, to concerns related to iPhone units, or to a combination of both elements.

To clear the air, Benzinga spoke about the weakness in semiconductors with Srini Sundararajan of Summit Research. The expert said he believes the aforementioned factors are "difficult to uncouple," but suggested the Linear Tech miss could be weighing on this group more than Apple concerns Wednesday. “Thinking further it is more LLTC than AAPL because LLTC blamed US macro economic and industrials weakness,” he concluded.

Also on Wednesday, Harsh Kumar, Managing Director and Semiconductor analyst at Stephens & Co, told Benzinga that he sees a “tremendous buying opportunity” in Wednesday’s dive. The expert recommended taking advantage of the weakness with the Market Vectors Semiconductor ETF SMH, which is down 2.45 percent on Wednesday afternoon.