Intel's own shares fell almost 10% after the publication of a quarterly report at the end of the week, as investors were upset by the lower forecast for annual revenue. CEO Robert Swan was forced to admit that the situation in the segment of data center components was worse than forecast in January. Inventories built up by customers last year have eroded demand for new products in the server segment, and solid-state memory prices continue to fall. In addition, the situation in the Chinese economy does not inspire optimism, and hopes for market growth associated with the second half of the year do not convince all investors.
Resource notes that Intel's quarterly statistics strengthened investor confidence in the long-term nature of the problems in the solid-state memory market. SK Hynix was recently that memory prices are declining more than expected, and production volumes will have to be reduced. Intel also does not show confidence that the bottom has already been passed, and the revenue of the DCG division for the year should be reduced by 5-6%, as management expects.
Micron has already expressed fears that revenue for the quarter ending in May could be reduced by 38%, and earnings per share will fall by all 73%. The company's management at the March reporting conference expressed hope for growth in the server segment in the second half of the year, but if demand for memory remains sluggish, prices will not have time to rise quickly.
Shares of Western Digital Corporation also fell in price by 3-4% after the announcement of quarterly statistics from Intel. The hard drive and solid-state memory maker is set to release its earnings report early next week, but preliminary data suggests a 26% drop in revenue and an 86% drop in earnings per share.
Even NVIDIA's shares fell by almost 5% against the backdrop of Intel's pessimism. The GPU developer is trying to strengthen its position in the data center segment by offering specialized compute accelerators. If the demand for server processors is limited, then GPU-based accelerators will be bought up worse. NVIDIA's official reports will be published only next month, and while the company's revenue is more dependent on gaming video cards, the diversification course has been taken a long time ago, and the impact of the data center segment on the company's business will steadily increase.
Source: 3dnews.ru