Everyone hates chip stocks and chip equipment stocks now. NVDA is also taking a 4% hit on somewhat lackluster guidance for next Q- although it is still in the midpoint of previous guidance.
AMAT's weakness is also causing a drop in their customers stocks like MU too. Seems to me though, that if MU and other chipmakers are cutting back on expansion plans that should be a good thing in keeping supply and demand in balance. Also MU is at a PE of 4 now while NVDA is at a PE of 40, quite a difference.
MU is back to good technical support at 46 area. I expect to add some back here.
NVDA also reported a strong Q2 but said it expects Q3 revenue of about $3.25 billion at the midpoint of its guidance range, about $100 million below the average analyst estimate.
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