Semiconductor shares slid in morning trading.
Applied Materials fell 3%; AMD, Arm, Marvell fell over 2%; Nvidia, Micron, Broadcom, ASML, Qualcomm fell over 1%.
Shares of Intel were down 12% after forecasting quarterly revenue below estimates.
The chipmaker expects adjusted first-quarter revenue in the range of $12.2 billion-$13.2 billion, compared with analysts' average estimate of $14.50 billion, according to LSEG data. Intel forecast first-quarter profit of 13 cents a share, excluding one-time items. Analysts expected 33 cents a share. It was not immediately clear if the numbers were comparable.
Heavy investments have toppled Intel's gross margin, which fell to the mid-30s earlier in 2023, from prior highs of over 60%. Intel, however, mildly recouped with an adjusted gross margin of 45.8% in the third quarter. Intel reported a fourth-quarter gross margin of 48.8%.
Analysts have proclaimed 2024 as a "make-or-break" period for Intel. They believe 2024 will be the year that determines whether Intel actually stands to gain from the rollout of much- coveted artificial-intelligence PCs and its AI-enabling chips.