The semiconductors are viewed as being tied to the economy as a whole.
– Kim Caughey, Senior Investment Analyst, Fort Pitt Capital Group
Another piece of news that caught my attention yesterday was Advanced Micro Device’s (AMD), the semiconductor company, announcement that first quarter revenues would decline about 15% from the 4th quarter compared to a usual seasonal decline of around 7% (AMD 8-K).
Semiconductors go into all sorts of electronic and technical equipment and so a larger than expected decrease in sales by one of the biggest semi producers could have implications about sales of and demand for products further down the chain.
It’s just another little tell that conditions are tough out there.
Disclosure: Top Gun has no position in Advanced Micro Devices (AMD) shares.