Sandisk Weakness Hits Other Chip, Flash Makers (SNDK, MU, BRCM, NVDA, QCOM, AAPL)

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

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