I am not a market "maven", but just an individual guy sitting on the sidelines watching in amazement the ups and downs of the semi stocks. Really makes no sense to me. Most are making very good money with a booming market that looks good going forward, but the chip and chip making stocks are struggling, none more so than Micron(and WDC), (LRCX), and (AMAT). Then we get the Mizuho article talking about "a tough neighborhood".
Rakesh expects that DRAM prices could be down 3% or 4% in the calendar fourth quarter, but he predicts that prices could stabilize "earlier in the June quarter of 2019, providing a faster normalization for Micron."
So, prices are down 3% or 4% in the 4th quarter and could stabilize by June quarter 2019? I tell you, based on this the end of the "world" is near. What a downer! Do you suppose their earnings will go negative?( a little sarcasm here).
In the last 13 weeks these stocks are down LRCX(-12.2%), MU(-13.7%), and AMAT(-16.3%). From their last interim highs the stocks are down AMAT(-38.6%), LRCX(-36.0%), and MU(-30.2%).
This action is really "dumb". |
