Sector Watch: Chip Stocks Suffer as Analysts Cut Estimates - TheStreet

Semiconductor stocks were down across the board in afternoon trading following research notes from

Lehman Brothers

and

Goldman Sachs

, who cut their earnings estimates on a number of companies in the sector.

Lehman analyst Dan Niles

cut his 2001 and 2002 estimates for

Intel

(INTC) - Get Report

and

Advanced Micro Devices

(AMD) - Get Report

, citing a "continuing deterioration in demand for PCs," among other factors. Goldman Sachs analyst Nathaniel Cohn

reduced his estimates for

Applied Micro Circuits

(AMCC)

,

Conexant Systems

(CNXT) - Get Report

,

PMC-Sierra

(PMCS)

and

Vitesse Semiconductor

(VTSS)

. He said the companies will likely see a decline in revenue in the third quarter.

Despite the cut, Intel was up 0.2% to $26.73 recently on the

Nasdaq

. Others weren't faring as well. Vitesse was off 5.4% to $16.20, and Conexant fell 7.6% to $7.02. Advanced Micro Devices slid 5.5% to $23.61 on the

Big Board. Communications chipmaker PMC-Sierra dropped 5.2% to $23.55, and Applied Micro Circuits lost 1.6% to $13.29.

Elsewhere in the sector,

Texas Instruments

(TXN) - Get Report

was down 2% to $29, while

Micron Technology

(MU) - Get Report

was off 5.4% to $35.96.

The Philadelphia Stock Exchange Semiconductor Index

was off 4.3% to 562.4.