Bleak outlook for Lam Research, Sandisk -Barron's
Sun May 28, 2006 6:55 PM ET
NEW YORK, May 28 (Reuters) - Shares of Lam Research Corp. (LRCX.O: Quote, Profile, Research) and Sandisk Corp. (SNDK.O: Quote, Profile, Research) could be badly hit by a softening in demand for NAND chips, according to Barron's May 29th edition.
NAND, which is short for "not and," refers to a type of chip logic that stores information even when power is turned off.
According to Barron's, Fred Hickey, proprietor of The High-Tech Strategist newsletter, believes that the looming glut of NAND chips could dash hopes for a second-half rebound, and shares of both companies could easily drop 50 percent.
On Friday, Lam closed at $45.14 and Sandisk closed at $59.64.
Sandisk manufactures NAND chips, while Lam Research makes etching systems that chip makers use to produce NAND chips. |
