Semtech Stock Plunges on Declining Demand

Semtech Corp. shares fell as much as 17% after the semiconductor maker said sales this quarter will fall and profit will miss analysts’ forecasts as chip demand slips.

Camarillo-based Semtech fell $3.56 to $14.55 on the Nasdaq.

Demand for chips has fallen in the last two years at Semtech, Intel Corp., Texas Instruments Inc. and rivals as companies reduce spending. Shipments to desktop-computer customers fell in the quarter ended Oct. 27 because of supply shortages and increased competition, Semtech said after the close of U.S. stock markets Monday.

The company said it expects fourth-quarter profit of 9 cents to 11 cents a share, compared with net income of 11 cents a year earlier.