(Bloomberg) -- Technology stocks are facing more pain after chipmaker Advanced Micro Devices Inc. revived fears about the upcoming earnings season after warning that third-quarter sales were softer than expected.
Most Read from Bloomberg
Musk's Twitter Takeover Hits Snag Over Debt-Financing Issue
Nord Stream Leaks Caused by Detonations in Sign of Sabotage
Kremlin Lets State Media Tell Some Truths About Putin’s Stalling War
Trump Says US Agency Packed Top-Secret Documents. These Emails Suggest Otherwise.
Stocks Slide With Anxiety Running High Before Jobs: Markets Wrap
AMD blamed disappointing preliminary results on weakness in the personal computer market, sending its shares and those of other companies involved in the sector lower in postmarket trading. AMD, Nvidia Corp., Intel Corp. and Microchip Technology Inc. were among chipmakers down more than 2%, while computer makers HP Inc. and Dell Technologies Inc. also fell.
Futures tracking the tech-heavy Nasdaq 100 Index slipped as much as 0.6% during early trading hours in Asia, extending losses into a third day.
AMD’s announcement was followed by a report from Samsung Electronics Co. that its profit dropped for the first time since 2019, underscoring the depth of a global PC and memory chip downturn. Samsung shares slid as much as 2% before erasing losses.
Investors are bracing for a potentially difficult earnings season amid rising risk of a recession with inflation and the strong dollar eating into profit margins. Analysts have trimmed 2023 profit estimates for technology companies at a faster rate than the broader market, though most expect further cuts if results disappoint.
Most Read from Bloomberg Businessweek
The Massive Gas Field That Europe Can’t Use
Even After $100 Billion, Self-Driving Cars Are Going Nowhere
‘I Am Energy’: Inside the Bang Billionaire’s Reeling Empire
Millions in Cryptocurrency Vanished as Agents Watched Helplessly
Musk Won’t Own Twitter Until the Shareholders Get Paid
©2022 Bloomberg L.P.
