Semiconductors Fall
Memory chip maker Micron Technology Inc. was among the biggest decliners Wednesday on what was a mostly down day for semiconductor stocks, due mainly to worries over a tough pricing environment.
After posting slightly better-than-expected results for its fiscal fourth quarter, Micron issued what one analyst called "subdued" guidance on a challenging pricing environment.
Lehman Brothers analyst Tim Luke kept an "Equal Weight" rating on Micron.
With "memory pricing likely to trend lower over the near term, as spot pricing is still significantly below contract price levels, our low-end estimates are unchanged," Luke wrote in a client note.
Shares fell $1.03, or 8.7 percent, to $10.76 in early afternoon trading. The stock, which is down about 3 percent month-to-date, has traded in the 52-week range of $10.30 to $18.17.
Shares of industry leader Intel Corp. fell 53 cents, or 2 percent, to $25.85. The stock has traded between 18.75 and $27.71 in the past year.
Morgan Stanley analyst Mark Lipacis started coverage of Intel with an "Underweight" rating.
"We recommend that investors reduce positions in Intel ahead of what we expect will be an inventory correction and increasingly aggressive price environment," Lipacis wrote. The analyst also recommended that investors lower their positions in Advanced Micro Devices Inc. for the same reasons.
AMD's shares fell 29 cents, or 2.2 percent, to $12.91.
Qualcomm Inc., which is being investigated by European Union antitrust regulators for possible abusive business practices, was among the handful of stocks heading higher. The company makes mobile phone chips. Its shares rose 34 cents to $42.32.
The Philadelphia Semiconductor Sector index fell 9.75 points, or 1.93 percent, to 496.22.
Published by AP
posted by Stock Administrator @ 5:03 PM
0 Comments
Semiconductors Fall
Memory chip maker Micron Technology Inc. was among the biggest decliners Wednesday on what was a mostly down day for semiconductor stocks, due mainly to worries over a tough pricing environment.
After posting slightly better-than-expected results for its fiscal fourth quarter, Micron issued what one analyst called "subdued" guidance on a challenging pricing environment.
Lehman Brothers analyst Tim Luke kept an "Equal Weight" rating on Micron.
With "memory pricing likely to trend lower over the near term, as spot pricing is still significantly below contract price levels, our low-end estimates are unchanged," Luke wrote in a client note.
Shares fell $1.03, or 8.7 percent, to $10.76 in early afternoon trading. The stock, which is down about 3 percent month-to-date, has traded in the 52-week range of $10.30 to $18.17.
Shares of industry leader Intel Corp. fell 53 cents, or 2 percent, to $25.85. The stock has traded between 18.75 and $27.71 in the past year.
Morgan Stanley analyst Mark Lipacis started coverage of Intel with an "Underweight" rating.
"We recommend that investors reduce positions in Intel ahead of what we expect will be an inventory correction and increasingly aggressive price environment," Lipacis wrote. The analyst also recommended that investors lower their positions in Advanced Micro Devices Inc. for the same reasons.
AMD's shares fell 29 cents, or 2.2 percent, to $12.91.
Qualcomm Inc., which is being investigated by European Union antitrust regulators for possible abusive business practices, was among the handful of stocks heading higher. The company makes mobile phone chips. Its shares rose 34 cents to $42.32.
The Philadelphia Semiconductor Sector index fell 9.75 points, or 1.93 percent, to 496.22.
Published by AP
After posting slightly better-than-expected results for its fiscal fourth quarter, Micron issued what one analyst called "subdued" guidance on a challenging pricing environment.
Lehman Brothers analyst Tim Luke kept an "Equal Weight" rating on Micron.
With "memory pricing likely to trend lower over the near term, as spot pricing is still significantly below contract price levels, our low-end estimates are unchanged," Luke wrote in a client note.
Shares fell $1.03, or 8.7 percent, to $10.76 in early afternoon trading. The stock, which is down about 3 percent month-to-date, has traded in the 52-week range of $10.30 to $18.17.
Shares of industry leader Intel Corp. fell 53 cents, or 2 percent, to $25.85. The stock has traded between 18.75 and $27.71 in the past year.
Morgan Stanley analyst Mark Lipacis started coverage of Intel with an "Underweight" rating.
"We recommend that investors reduce positions in Intel ahead of what we expect will be an inventory correction and increasingly aggressive price environment," Lipacis wrote. The analyst also recommended that investors lower their positions in Advanced Micro Devices Inc. for the same reasons.
AMD's shares fell 29 cents, or 2.2 percent, to $12.91.
Qualcomm Inc., which is being investigated by European Union antitrust regulators for possible abusive business practices, was among the handful of stocks heading higher. The company makes mobile phone chips. Its shares rose 34 cents to $42.32.
The Philadelphia Semiconductor Sector index fell 9.75 points, or 1.93 percent, to 496.22.
Published by AP
posted by Stock Administrator @ 5:03 PM
0 Comments
