Skip to main content

Market Overview

Here's Why Micron, TSMC, AMD, Nvidia, Qualcomm And Other Chipmakers Are Trading Lower Premarket

Share:
Here's Why Micron, TSMC, AMD, Nvidia, Qualcomm And Other Chipmakers Are Trading Lower Premarket

Chipmaking stocks are bleeding post Micron Technology, Inc's (NASDAQ: MUcautious Q4 guidance

Piper Sandler saw DRAM, and NAND pricing decline, affecting Micron as mobile and notebook end-markets face continued weakness based on inSpectrum's June monthly memory contract pricing data.

Piper Sandler also shared how semiconductor equipment stocks may become range-bound in a decelerating or declining memory CAPEX environment.

It pointed out Lam Research Corp (NASDAQ: LRCX) with higher relative exposure to memory CAPEX, followed by Applied Materials, Inc (NASDAQ: AMAT), KLA Corp (NASDAQ: KLAC), and ASML Holding N.V. (NASDAQ: ASML).

Piper Sandler had downgraded Micron, citing its dependence on DRAM, battling price declines for most configurations, and significant exposure to consumer-like markets such as PCs and mobile, which get hammered during an economic slowdown.

Mizuho also shared a similar opinion.

Earlier this month, Advanced Micro Devices, Inc (NASDAQ: AMD) warned against a slowdown in the PC market after two solid years amid the pandemic.

Gartner also shared how China's economic slowdown and inflation-led drop in consumer spending will likely weigh on the global shipments of computers and smartphones in 2022. All of which will affect companies ranging from Nvidia Corp (NASDAQ: NVDA) to Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT), set to announce their quarterly earnings starting in July.

Premarket Price Actions: MU traded lower by 4.45% at $52.82, ASML down by 3.93% at $457.20, TSM down by 3.6% at $78.81, United Microelectronics Corp (NYSE: UMC) shares falling by 3.1% at $6.56, Western Digital Corp (NASDAQ: WDC) down 3.64% at $43.20, Nvidia -1.65% at $149.30, Qualcomm Corp (NASDAQ: QCOM) -1.71% at $125.55, and AMD -1.75% at $75.13.

Photo via Wikimedia Commons

 

Related Articles (LRCX + MU)

View Comments and Join the Discussion!

Posted-In: why it's movingNews Movers Tech Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com