MU - 2 Chip Stocks With Big Problems
2023-06-25 06:50:00 ET
Semiconductor stocks are hot right now, largely due to the hype surrounding artificial intelligence. Advanced Micro Devices (NASDAQ: AMD) and Micron (NASDAQ: MU) can certainly benefit from this transformational technology. AMD sells high-powered accelerators aimed at training the most advanced AI models, and Micron manufactures the memory chips that are needed in gigantic quantities for AI workloads.
But before considering investing in AMD or Micron, you should know that both companies are dealing with significant headwinds.
AMD's comeback in the PC CPU market has slowed as demand for PCs tumbles. Global PC shipments were down 30% year-over-year in the first quarter, according to Gartner , driven by oversupply and economic uncertainty.
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2 Chip Stocks With Big Problems