The U.S. ban on doing business with Huawei is starting to hit U.S. chipmaker Broadcom hard. On its earnings yesterday, the company cut its annual revenue forecast for the second half of the year. The company expects 2019 revenue will be $22.5 billion, down from the $24.5 billion it predicted three months ago in its last earnings.
Broadcom’s shares fell 9% when markets opened this morning. Around half of its revenue came from China last year and Huawei is one of its biggest customers. The news is potentially a good indicator for what may happen to other big U.S. chip suppliers to Huawei. Shares of other major U.S. chipmakers like Skyworks, Micron, Nvidia, Qualcomm and Intel are also down today following Broadcom’s earnings.