Semiconductor exchange traded funds (ETFs) were on Wednesday’s agenda following quarterly results from and chip makers Broadcom (NasdaqGS: BRCM) and Altera (NasdaqGS: ALTR).
Broadcom shares were down nearly 8% in premarket trading Wednesday after the company reported first-quarter earnings that missed expectations. The growth in the mobile and wireless segment of the business “has slowed, at least in the near term,” said BMO Capital Markets in a research note.
Broadcom also announced a second-quarter revenue forecast that disappointed Wall Street.
Conversely, Altera was set for a higher open Wednesday following its quarterly update.
“Altera continues to execute well,” the BMO analysts remarked. “We believe the communications end-market is lining up nicely to provide continuing growth above the overall industry.”
Sector ETFs include Semiconductor HOLDRS (AMEX: SMH), PowerShares Dynamic Semiconductors Portfolio (NYSEArca: PSI) and SPDR S&P Semiconductor ETF (NYSEArca: XSD).
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