piling up bad news on semi conductor industry
AMD is on a really important zone here. if this breaks, its going to be a disaster for it. we can see 59-60. most of the semi conductor names like AMAT, NVDA or just semi etf SMH are pretty close to 200 weekly moving range. we might see it next week.
MU reported ok numbers for this quarter but their guidance is awful.
• They slashed EPS by 40% and REV by 20% in guidance.
• Operating margins of this quarter are inline but they guided way lower operating margins for next quarter which shows the pressure on their raw materials
and inventory side.
• Operating cash flows for this and next quarter are also a miss but thats not surprising considering their margins going down.
• Also, CEO on call said the demand is weaker for semi’s right now which probably is why semi’s have been getting hit in the last week or so.
The biggest issue i see on MU’s ER is declining mobile sales. They have had y/y declining sales and this might spill over to big names like APPL, QCOM, QRVO and also ad spend companies like APPS, TTD.
If a new leg down starts in the market, chip manufacturers and mobile makers, ad spend and 5G network companies should be on watch.
Also, the demand weakening comment should put a lot of pressure on NVDA and AMD as there will be doubts about them being able to fulfill their guidance with weakening demand. Especially AMD guided way higher last quarter.
TSM put out news friday that majority of their big suppliers are scaling down their chip orders for rest of 2022. this consists of AMD NVDA AAPL cutting from 5-12% of their chips.
please note that this post is not for monday trading, it is intended in general for the next 3-4 months.
MU reported ok numbers for this quarter but their guidance is awful.
• They slashed EPS by 40% and REV by 20% in guidance.
• Operating margins of this quarter are inline but they guided way lower operating margins for next quarter which shows the pressure on their raw materials
and inventory side.
• Operating cash flows for this and next quarter are also a miss but thats not surprising considering their margins going down.
• Also, CEO on call said the demand is weaker for semi’s right now which probably is why semi’s have been getting hit in the last week or so.
The biggest issue i see on MU’s ER is declining mobile sales. They have had y/y declining sales and this might spill over to big names like APPL, QCOM, QRVO and also ad spend companies like APPS, TTD.
If a new leg down starts in the market, chip manufacturers and mobile makers, ad spend and 5G network companies should be on watch.
Also, the demand weakening comment should put a lot of pressure on NVDA and AMD as there will be doubts about them being able to fulfill their guidance with weakening demand. Especially AMD guided way higher last quarter.
TSM put out news friday that majority of their big suppliers are scaling down their chip orders for rest of 2022. this consists of AMD NVDA AAPL cutting from 5-12% of their chips.
please note that this post is not for monday trading, it is intended in general for the next 3-4 months.
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