This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPED6Q20L_M.jpg
In a note on U.S. semiconductor stocks, the analysts stated that a flat third-quarter outlook adds risk to the stocks.
“June notebook shipments were better reflecting some Chromebook pull ins, but the bigger takeaway is the sub-seasonal flattish Q3 (in line with our Asia trip takeaways),” wrote the analysts. “We already cut after the trip but are tempering 2H estimates a little further.”
“ODMs [Original Design Manufacturers] were optimistic of a return to growth in Q4 but we just don’t see it given seasonal timing outside of maybe some Meteor Lake shipments late in the year,” they added. “Given this backdrop, we see some risk to 2H for AMD/INTC, where consensus has DD client growth in both quarters.”
The analysts concluded that the outlook for servers is similarly tempered with Cloud compute spend trending down DD, some even -20%, with one ODM update “indicating a weaker Enterprise outlook.”
