This Chip Stock Might Be Getting Ahead of Itself as Headwinds Loom Large
The coronavirus outbreak in China is turning out to be a challenge for a wide swathe of companies. Several big names in the tech sector have blamed the outbreak for negatively affecting their businesses. Smartphone giant Apple, for instance, recently slashed its revenue guidance as iPhone sales in China are expected to take a hit due to store closures driven by coronavirus concerns.
Not surprisingly, chipmakers dependent on smartphones, automotive, communications, and other businesses with China exposure have been in limbo. Analog Devices (NASDAQ: ADI) is the latest to join this bandwagon as the company had to reduce its second-quarter revenue estimate by $70 million to account for the potential business impact.
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Source Fool.com
