Telecom & Wireless
Sandisk Weakness Hits Other Chip, Flash Makers (SNDK, MU, BRCM, NVDA, QCOM, AAPL)
Published:
Last Updated:
Sandisk Corp. (NASDAQ: SNDK) had already guided its quarterly earnings down, but last night’s report also lowered the company’s forecast by about $250 million (our coverage here). That is likely the cause of the drooping prices for Micron Technology Inc. (NASDAQ: MU), Broadcom Corp. (NASDAQ: BRCM), and Nvidia Corp. (NASDAQ: NVDA). Only Qualcomm Inc. (NASDAQ: QCOM) is managing to avoid a hit today.
Micron’s shares are down about -4.2% at $6.71 in a 52-week range of $3.97-$11.83. Micron’s NAND Flash memory business was expected to get a boost from the release of Ultrabook laptop computers from a number of makers later this year. Sandisk, too, was expecting some help from the Ultrabook releases, but the company’s guidance put a halt to that.
Broadcom and Nvidia are also feeling the effects of Sandisk’s earnings report, but not to the same degree as Micron. Broadcom’s shares are down 1.4% at $35.23 in a 52-week range of $27.59-$41.00, and Nvidia’s shares are off -0.4% at $13.60 in a 52-week range of $11.47-$20.52.
Only Qualcomm is dodging Sandisk’s bullet, up nearly 1% at $63.16 in a 52-week range of $45.98-$68.87. The company is simply better positioned in the mobile device market than any of the others, primarily because of its role as a supplier to Apple Inc. (NASDAQ: AAPL).
Paul Ausick
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.