According to Reuters, Broadcom Inc. warned on Thursday that chip demand will slow down overall due to Sino-US trade conflicts and US export restrictions on Huawei, and cut its revenue forecast by 8% this year.
After the United States listed Huawei as a trade blacklist last month, Broadcom’s share price has been under pressure. Because Huawei's sales last year was about 900 million US dollars, accounting for 4% of the company's total sales.
The company in San Jose, Calif., fell 8% to $258.75. The above reasons not only dragged down the company's stock price, but also the stock prices of other chip makers such as Qualcomm, Texas Instruments and Skyworks Solutions.
Broadcom CEO HockTan said in a conference call with analysts, "It is clear that the Sino-US trade conflict, including the Huawei export ban, is causing economic and political uncertainty and lowering future expectations."
HockTan said that if consumer demand for smartphones remains stable, other handset makers may start to grab Huawei's market share, and these handset makers are likely to buy chips from Broadcom.
However, he also warned that this process may take up to six months.
“What impact does Huawei’s ban have on a company that sells parts and technology? Huawei is not allowed to buy our products. At the same time, we have no alternatives. So in the short term, the impact on us will be huge. HockTan said.
Broadcom's largest business unit, Semiconductor Solutions, saw revenues decline 10% in the second quarter to $4.09 billion, and revenue from the infrastructure software business was $1.41 billion.
HockTan said that the demand for enterprises and large software remains stable, mainly in North America and Europe.
Known for its Wi-Fi, Bluetooth and GPS-connected communications chips, Qualcomm reduced its full-year revenue forecast by $2 billion to $22.5 billion and said its customers are actively reducing inventory levels.
caveat! Broadcom: Chip demand has slowed down overall, this year's revenue forecast is lowered by 8%
Feb
02
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