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