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Western Digital, Micron, Nvidia Fall On Chip Glut Amid Recession Fears

posted by mrpg on Tuesday December 20, @01:45AM   Printer-friendly
from the why-is-lower-prices-bad? dept.

upstart writes:

Western Digital, Micron, Nvidia Fall On Chip Glut Amid Recession Fears :

Shares in flash memory chipmaker Western Digital (WDC) tumbled on Thursday after Goldman Sachs downgraded the company to sell, dragging down Micron Technology (MU) as well. And while shares in MU and WDC stock fell, graphics chipmaker Nvidia (NVDA) also dropped on oversupply concerns and a low rating for NVDA stock.

Goldman Sachs analyst Toshiya Hari in a report said "multiple sources" told him that flash memory chip suppliers are offering below cash-cost prices in an attempt to work down inventories amid "a weak macroeconomic backdrop."

Meanwhile, HSBC analyst Frank Lee initiated coverage of with NVDA stock a "reduce" rating. He cited expectations for a near-term chip inventory correction and demand uncertainty.

Nvidia makes chips for high-performance computer servers in data centers as well as automobiles.

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  • (Score: 0) by Anonymous Coward on Tuesday December 20, @03:21AM

    by Anonymous Coward on Tuesday December 20, @03:21AM (#1283259)

    Nvidia makes chips for high-performance computer servers in data centers as well as automobiles

    Really? I thought they made crypto mining cards..

  • (Score: 2) by oumuamua on Tuesday December 20, @03:53AM (1 child)

    by oumuamua (8401) on Tuesday December 20, @03:53AM (#1283264)

    To see if the last minute Christmas shoppers buy a bunch and turn the stock around.

    • (Score: 2) by coolgopher on Tuesday December 20, @04:20AM

      by coolgopher (1157) Subscriber Badge on Tuesday December 20, @04:20AM (#1283266)

      Didn't we all end up ponying up for the 3000 series last year in disgust and desperation? Not going to want to repeat that anytime soon, that's for sure. Besides, if I was buying now I'd seriously be considering Team Red instead.

  • (Score: 2) by fraxinus-tree on Tuesday December 20, @07:11AM (1 child)

    by fraxinus-tree (5590) on Tuesday December 20, @07:11AM (#1283289)

    Where in the electronics market this oversupply shit happens?

    • (Score: 2) by Mojibake Tengu on Tuesday December 20, @07:16AM

      by Mojibake Tengu (8598) on Tuesday December 20, @07:16AM (#1283293) Journal

      We are currently in active warring phase, that be a routine remedy to oversupply.

      --
      The edge of 太玄 cannot be defined, for it is beyond every aspect of design

  • (Score: 2) by jasassin on Tuesday December 20, @08:40PM

    by jasassin (3566) <jasassin@gmail.com> on Tuesday December 20, @08:40PM (#1283393) Homepage Journal

    So what does nVidea have to do with flash memory? Just a random reference?

    Maybe some price cuts on some 1TB SSD’s? Maybe some 4000, or even 3000, series GPU’s for MSRP or below MSRP (yeah right)?

    What is the point of selling flash chips for less than it cost to make them, just to “offload” them? Was the chip shortage basically a TSMC issue?

    --
    jasassin@gmail.com GPG Key ID: 0x663EB663D1E7F223
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