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Wed Dec 19, 2018, 12:05 PM

Chip gear makers take a beating after Micron's dour forecast

(Reuters) - Shares of chip gear makers fell after a tepid forecast by U.S.-based Micron Technology Inc (MU.O) exacerbated fears that a two-year chip boom was fizzling due to sluggish demand from makers of smartphones, PCs and servers.

The industry concerns weighed on U.S. chip equipment makers. Lam Research Corp (LRCX.O) fell 3 percent, while Applied Materials (AMAT.O) slipped 1.6 percent. U.S.-listed shares of ASML Holding NV (ASML.O) fell 1.8 percent.

Micron’s shares were down 7 percent at $31.21, while those of peer Hynix were down 1.3 percent.

At least eight brokerages lowered their price targets on Micron, with J.P. Morgan and Evercore ISI lowering their targets by $20, respectively. Needham and RBC downgraded the stock to “hold”. The median price target on the stock was $48.

https://www.reuters.com/article/us-micron-tech-stocks-idUSKBN1OI1LP

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Reply Chip gear makers take a beating after Micron's dour forecast (Original post)
uncledad Dec 2018 OP
Troll2 Dec 2018 #1
uncledad Dec 2018 #2

Response to uncledad (Original post)

Wed Dec 19, 2018, 01:19 PM

1. Also because there's fear that Lam and Applied Materials won't be able to sell to China.

ASML is Dutch, but maybe the long arm of the US will also affect their sales to China.

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Response to Troll2 (Reply #1)

Wed Dec 19, 2018, 01:43 PM

2. Will consumers pay a price on limited supply?

Or is there too much already in the pipeline to make a difference?

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