AMS was among the worst performers on Tuesday across Europe’s stock markets after the Austrian chipmaker said sales in the current quarter will be significantly weaker than analysts had forecast.

The Apple supplier’s shares were off 8.6 per cent in Swiss trading to SFr87.20. With the sell-off, AMS has shed its year to date gain, marking a dramatic contrast to the 208 per cent rise that was recorded in 2017.

AMS said late on Monday that for the quarter ending in June it “expects a significant short-term impact in its consumer business from strongly accelerated customer-driven product transitions related to large smartphone programmes.” Its non-consumer businesses, however, “are expected to continue their solid development in the second quarter.”

As a result of the transitions, the group forecast “significant under-utilisation of capacity in the second quarter leading to a negative adjusted operating margin.” AMS reckons second quarter sales will be $220m-$250m, well short of the $355.3m forecast by analysts in a FactSet poll.

First-quarter revenues climbed 147 per cent from the same three-month period in the previous year to $452.7m. The figure was in the lower-half of the range the company had expected, but better than market expectations of $442.6m.

Adjusted net income, which excludes certain items, came in at $99.9m, compared with a loss of $19.9m in the same period in 2017.

Chipmakers in general have had a rough month so far. MSCI’s broad index tracking semiconductor stocks in developed markets has fallen 4.5 per cent in April. It is still up 0.79 per cent from the year.

Investors have grown increasingly concerned about the slowdown in the global smartphone market. These jitters hotted up last week, after Taiwan Semiconductor, one of Apple’s biggest suppliers, warned of “weak demand from the mobile sector”.

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