The semiconductor sector was under pressure Wednesday after Microchip Technology (MCHP) - Get Report provided a third-quarter outlook that missed Wall Street expectations due to what it said was trade-war uncertainty.
The Chandler, Ariz., company's outlook is worse than its peers, according to a Cowen note, but that hasn't stopped investors from selling off some big names in the sector.
Three Action Alerts PLUS stocks -- Marvell Technology (MRVL) - Get Report , Lam Research (LRCX) - Get Report and Nvidia (NVDA) - Get Report -- are all falling sharply following Microchip Tech's announcement.
Analysts at Cowen affirmed a market-perform rating on Microchip Tech while lowering its price target by a dollar to $89. Cowen was one of the only firms to take a bearish turn on the stock, however.
Raymond James maintained its strong-buy rating and $115 price target, stating that it is actually "more comfortable" due to "channel inventory near a historic low, much more reasonable expectations and management commentary no longer pointing to a bonanza."
Morgan Stanley raised its price target on Microchip Technology to $90 from $84 due to factors like positive inventory trends and a pickup in the October business.
Citi raised its price target to $109 from $104 while affirming a buy rating. The firm sees strong EPS growth going forward, despite the weaker-than-expected outlook.
Nvidia shares at last check were down 1.3% Wednesday, while Lam Research fell 1.7% and Marvell declined 1.8%. Microchip Tech shares dropped 5.6% to $94.45.
Marvell, Lam Research and Nvidia are key holdings in Jim Cramer's Action Alerts PLUS charitable trust.