Here's Why Micron, TSMC, AMD, Nvidia, Qualcomm And Other Chipmakers Are Trading Lower Premarket

Chipmaking stocks are bleeding post Micron Technology, Inc's MU cautious Q4 guidance

Piper Sandler saw DRAM, and NAND pricing decline, affecting Micron as mobile and notebook end-markets face continued weakness based on inSpectrum's June monthly memory contract pricing data.

Piper Sandler also shared how semiconductor equipment stocks may become range-bound in a decelerating or declining memory CAPEX environment.

It pointed out Lam Research Corp LRCX with higher relative exposure to memory CAPEX, followed by Applied Materials, Inc AMATKLA Corp KLAC, and ASML Holding N.V. ASML.

Piper Sandler had downgraded Micron, citing its dependence on DRAM, battling price declines for most configurations, and significant exposure to consumer-like markets such as PCs and mobile, which get hammered during an economic slowdown.

Mizuho also shared a similar opinion.

Earlier this month, Advanced Micro Devices, Inc AMD warned against a slowdown in the PC market after two solid years amid the pandemic.

Gartner also shared how China's economic slowdown and inflation-led drop in consumer spending will likely weigh on the global shipments of computers and smartphones in 2022. All of which will affect companies ranging from Nvidia Corp NVDA to Apple Inc AAPL and Microsoft Corp MSFT, set to announce their quarterly earnings starting in July.

Premarket Price Actions: MU traded lower by 4.45% at $52.82, ASML down by 3.93% at $457.20, TSM down by 3.6% at $78.81, United Microelectronics Corp UMC shares falling by 3.1% at $6.56, Western Digital Corp WDC down 3.64% at $43.20, Nvidia -1.65% at $149.30, Qualcomm Corp QCOM -1.71% at $125.55, and AMD -1.75% at $75.13.

Photo via Wikimedia Commons

Posted In: Information TechnologySemiconductor Equipmentwhy it's movingNewsMoversTechTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.