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Intel (NASDAQ:INTC) led the semiconductor industry lower on Tuesday as investment firm Morgan Stanley lowered its estimates for the PC market for 2023, citing “prolonged” weakness from the consumer and commercial markets.
Analyst Erik Woodring lowered his estimate to 249M shipments for 2023, down from a previous estimate of 261M, while adding that 249M shipments would be the lowest figure since 2006.
Additionally, there is evidence that PC manufacturers are becoming “more aggressive” to discount their products in an effort to spur demand.
Intel (INTC), which still generates nearly half of its revenue from the PC market, also reportedly delayed an advanced chip order from global foundry Taiwan Semiconductor (NYSE:TSM) until 2024.
Intel (INTC) shares fell 4.7% in mid-day trading, while Taiwan Semiconductor (TSM) dropped 2.1%. AMD (AMD) and Nvidia (NASDAQ:NVDA), which both compete with Intel (INTC), lost 2% and 2.7%, respectively.
Separately on Tuesday, Microsoft (MSFT) said it had signed a deal with Nvidia (NVDA) to bring its Xbox PC games and Activision (ATVI) games to Nvidia’s GeForce Now streaming service.
Qualcomm (NASDAQ:QCOM) shares dropped 2% as the company unveiled a cloud software service for its semiconductor clients to keep an eye on their goods through the supply chain.
Several other semiconductor stocks declined on Tuesday, including Broadcom (AVGO), NXP Semiconductors (NXPI), Texas Instruments (TXN) and Analog Devices (ADI), all of which fell between 1% and 3%.
Chip equipment makers also lost value, as ASML (ASML), Lam Research (LRCX), KLA Corp. (KLAC) and Applied Materials (AMAT) lost between 1.5% and 3.5%.
Last week, investment firm Bernstein said Intel (INTC) may never see its “peak” revenues from the segment ever again as competitors continue to take share.