(Bloomberg) — Shares of Renesas Electronics Corp. plunged by the most in more than 12 years, hit by a broader tech selloff and investor disappointment over the Japanese chipmaker’s profit miss.
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Renesas’s stock fell as much as 17%, tumbling by their daily limit. The company, which is nearing the completion of an acquisition of Altium Inc., the previous day reported underwhelming operating profit in its mainstay industrial segment, which includes Internet-of-Things and infrastructure-related chips.
“We were too optimistic in our outlook in the first quarter,” Renesas Chief Executive Officer Hidetoshi Shibata told reporters and analysts on Thursday. The company expects sales in its industrial-use chips to fall in the current quarter, but that will be the bottom, he said, adding that the company will continue to invest in research and development.
Earlier this month, AI enthusiasm had lifted the stock price of the chipmaker, which supplies Toyota Motor Corp. and Honda Motor Co., to its highest since the global financial crisis.
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