Chip stocks continue their decline as Arm and Qualcomm earnings show pressure on smartphone business.

TechFlow reported on Nov. 6 that, according to Investor's Business Daily, chip stocks continued to decline after the U.S. election results and earnings reports from companies such as Arm and Qualcomm were released. The Philadelphia Semiconductor Index fell 10.1% during trading on Thursday. The report noted that election results showed support for policies limiting the construction of new AI data centers, leading Wall Street analysts to lower price targets for multiple AI infrastructure-related chip companies.

Arm's second-quarter fiscal revenue, profit, and performance outlook all beat expectations, but third-quarter royalty income missed estimates, partly due to weak smartphone sales. Qualcomm's fourth-quarter fiscal performance and current-quarter outlook slightly exceeded market expectations, although its smartphone chip sales were impacted by market weakness.

Regarding other chip companies, Astera Labs' third-quarter results and fourth-quarter guidance both came in above expectations; Coherent's first-quarter fiscal results beat expectations and it upgraded its outlook.