When it rains it pours and news that Apple Inc. (AAPL) - Get Apple Inc. Reportis cutting ties with Intel Corp. (INTC) - Get Intel Corporation Report as a chip supplier has the entire semiconductor sector looking for shelter.
Bloomberg reported that Action Alerts Plus holding Apple will move on from Intel as a chip supplier for its Mac computers in favor of an in-house model that they produce. The report sent Intel tumbling 9%, its biggest one day drop in nearly two years.
But, Intel wasn't the only security to suffer on the news, the PHLX Semiconductor Sector ETF dropped 4.1% as semiconductor stocks across the board felt the reverberation from Apple's reported moves.
Taiwan Semiconductor Co. (TSM) - Get Taiwan Semiconductor Manufacturing Company Ltd. Report - down 2.66%.