Nvidia (NVDA) stock fell Wednesday after rival AI chipmaker Advanced Micro Devices (AMD) disappointed investors with its tepid guidance. Semiconductor stocks overall took a bath following quarterly reports from AMD and Skyworks Solutions (SWKS).

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Late Tuesday, AMD matched Wall Street’s earnings target for the first quarter but sales were a tad light. Its sales outlook for the current quarter was roughly in line with estimates, but Wall Street was looking for a bigger boost from the company’s MI300 AI accelerator business.

AMD raised its 2024 revenue target for MI300 to “at least $4 billion,” up from $3.5 billion. But some on Wall Street were looking for new guidance of $4.5 billion to $5 billion for the product.

In midday trading on the stock market today, AMD stock tumbled more than 9% to 143.21. Nvidia stock retreated roughly 5% to 821.39.

Elsewhere among semiconductor stocks, wireless-chip maker Skyworks delivered a modest beat for the March quarter, but guided well below views for the June quarter. Skyworks is heavily exposed to the declining smartphone market.

Skyworks stock plummeted 15.4% to 90.13 on Wednesday.

Meanwhile, the Philadelphia semiconductor index, known as SOX, slid 3.9%. The SOX includes the 30 largest semiconductor stocks traded in the U.S.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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