When Apple sneezes, the supply chain gets the flu.
From “Apple’s Virus Warning Takes Bite Out of Chip-Maker Stocks” ($) in Wednesday’s Wall Street Journal
Semiconductor stocks slid Tuesday, pummeled by Apple Inc.’s warning that its revenue would be hurt by China’s coronavirus outbreak.
Broadcom Inc. fell 2.2%, Intel Corp. fell 1.7%, and Qualcomm Inc. fell 1.8%, while the S&P 500 was down 0.3%. Like many makers of computer chips, all three companies are Apple suppliers.
Shares of Qorvo Inc., a smaller firm that builds radio-frequency chips used by Apple, dropped 2.6%, while Cirrus Logic Inc., another Apple supplier, shed 3.2%.
Shares of Apple itself were down 1.8%.
My take: As I type this, Apple is up 0.5% in pre-market trading.