After chipmaker AMD stock discussion rekindled anxieties about the forthcoming earnings season by warning that third-quarter sales were worse than expected, technology stocks are facing more pain than they had previously anticipated.
AMD stock discussion attributed its unsatisfactory preliminary results to a lack of demand in the personal computer industry. As a result, the company’s stock, as well as the stock of other firms involved in the sector, fell in postmarket trade. Chipmakers such as Advanced Micro Devices Inc.(NASDAQ:AMD), Nvidia Corporation, Intel Corporation, and Microchip Technology Inc. were among those with declines of more than 2%; computer manufacturers HP Inc. and Dell Technologies Inc. also had declines in their stock prices.
AMD Stock Discussion Concern
Following the announcement made by the company based in Santa Clara, California, Samsung Electronics Company of South Korea released a report stating that the company’s profit had decreased for the first time since the beginning of the year, highlighting the severity of the global PC and memory chip downturn. Shares of Samsung first dropped by as much as 2% before recovering some of those losses.
During the early trading times in Asia, futures contracts that tracked the tech-heavy Nasdaq 100 Index dropped by 0.6% before beginning to recover. According to Tina Teng, an analyst with CMC Markets, weak demand and supply chain concerns for the semiconductor industry may already have been priced in, leaving futures with minimal change ahead of Friday’s news on US monthly payrolls. This is according to what may have already been priced in.
Investors are bracing themselves for a potentially challenging earnings season amid an increasing danger of a recession. Profit margins are already under scrutiny due to inflation and a substantial currency cut in profits. The profit projections for technology businesses in 2023 have been reduced quicker than the market as a whole; nonetheless, most analysts anticipate more reductions if the results are unsatisfactory.
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Author Faith Yakubu 
