Tuesday, April 5, 2011

Semis (INTC) (NVDA) (LRCX) (AMAT) (AMD) (MU) (CRUS) Crunched on Rising Japan Fears

Fears a shortage of chips could dramatically have an negative effect on the semiconductor sector had shares of Intel (NASDAQ:INTC), Cirrus Logic (NASDAQ:CRUS), Nvidia (NASDAQ:INTC), Lam Research (NASDAQ:LRCX), Applied Materials (NASDAQ:AMAT), Micron ((NASDAQ:MU) and AMD (NYSE:AMD) all end down on Monday, and they should remain under pressure for some time because of the uncertainty surrounding supply.

Research firm Gartner noted, “Clearly, there are some material supply challenges ahead of the industry in the aftermath of the tragic events in Japan.”

With the Semiconductor Industry Association reported a drop in worldwide chip sales in February compared with the January, there's a question as to whether or not Japan is the only reason for the slowdown, although February is a short month, which may be a contributing factor.

Intel closed Monday at $19.49, dropping $0.23, or 1.17 percent. Applied Materials closed at $15.40, falling $15.40, losing $0.13, or 0.84 percent. Micron closed at $11.19, down $0.11, or 0.97 percent. Applied Micro Devices ended the session at $15.40, losing 0.13, or 0.84 percent. Lam Research closed at $54.90, dropping $1.41, or 2.50 percent. Cirrus Logic fell to $19.65, down $0.69, or 3.39 percent. Nvidia closed down at $17.55, losing 0.65, or 3.57 percent.

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