Microchip Technology Tanks on Guidance and Leads Chip Makers Down
Microchip Technology's revenue warning sent its shares tanking on Friday, making it TheStreet's Move of the Day. The chip maker issued a cautious sales guidance late Thursday, citing the start of an industry correction that could weigh heavily on other computer chip manufacturers. The semiconductor sector was hit with heavy selling pressure after the warning from Microchip Technology's CEO. The company lowered its second quarter revenue forecast, below analysts' expectations. The news dragged down the NASDAQ index with related companies including Texas Instruments, Atmel Corp. and Intel, all closing in the red. Shares of Microchip Technology plummeted 12.26% to close at $39.96 on Friday. The stock traded on more than eight times its average trading volume.