Semiconductor Stocks Sink as Huawei Pain Hits Tech Rebound
- Broadcom cuts forecast, sending shockwaves across industry
- Outlook downgrade linked to Huawei export ban, trade war
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Chip stocks led declines in the U.S. and Europe after Broadcom Inc. cut its forecast, blaming the escalating trade war between the world’s two largest economies.
Broadcom said its customers are actively reducing inventory levels and cutting chip orders, concerned about the impact higher tariffs will have on the global economy. One of its biggest clients is Huawei Technologies Co., the Chinese network-equipment maker that’s become a flashpoint in the wider economic showdown between the U.S. and China.