NVIDIA and Micron Technology Begin to Feel Sting of Sluggish Economy
January 03, 2012 08:16 ET
NVIDIA and Micron Technology Begin to Feel Sting of Sluggish Economy
The Bedford Report Provides Equity Research on NVIDIA & Micron Technology
NEW YORK, NY--(Marketwire - Jan 3, 2012) - Semiconductor stocks have been on the downswing in recent months, with Roger Cox, a research vice president at Gartner research arguing that North American chipmakers are "finally laboring under the weight of an extremely sluggish economy." Worldwide industry growth in the third quarter was its lowest in seven quarters, while the North American segment of the sector's growth was 6.7 percent in the third quarter. The Bedford Report examines the outlook for companies in the Semiconductor Industry and provides equity research on NVIDIA Corporation (
[ www.bedfordreport.com/NVDA ]
According to the research firm Gartner, Inc. semiconductor sales should reach $309 billion in 2012, up 2.2% from this year. This is down from earlier forecasts, when the company projected 4.6% growth for 2012. "The near-term forecast is being shaped not only by economic forces but by an inventory correction, manufacturing oversupply and natural disasters," said Bryan Lewis, a Gartner research vice president.
While the chip market is expected to remain marginally positive, the semiconductor equipment industry is poised for a steep downturn. According to the Semiconductor Equipment and Materials International (SEMI) trade group, sales of new semiconductor manufacturing equipment will slump by 10.8% in 2012 -- with Korea the only major region likely to show any growth. The organization released the figures at the SEMICON Japan exposition in Tokyo this last month.
The Bedford Report releases stock research on the Semiconductor Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.bedfordreport.com ] and get exclusive access to our numerous stock reports and industry newsletters.
NVIDIA Corporation provides mobile computing solutions that generate interactive graphics on various devices including tablets and smart phones. Recently, SEGA announced they are working on Sonic the Hedgehog 4 Episode 2, and will be launching the game on NVIDIA Tegra devices early this year.
Last month Micron Technology reported a wider-than-expected loss in its fiscal first quarter as weaker selling prices for computer memory chips offset higher volume and dragged down margins. The company's Chief Executive Steve Appleton said during a conference call that the DRAM market continues to be weak, particularly in PCs. Meanwhile, severe flooding in Thailand is leading to hard-drive shortages and hurting the computer market.
The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: [ http://www.bedfordreport.com/disclaimer ]