3 Signs the Market Will Dip Further, and 3 Signs We May Have Hit the Bottom
The signs of slowing growth are gathering, but ignoring the silver linings also coming alongside them would be a mistake. Some very high-profile companies, notably semiconductor manufacturer Micron Technology (NASDAQ: MU), Tesla (NASDAQ: TSLA), and Google owner Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) have already served notice of difficult conditions ahead. Let's look at what happened and why it's not all bad news for the markets.
Semiconductors are always thought of as the canary in the coal mine. So when chip customers see end-user demand for their products slowing, the first thing they do is look to cut orders from chipmakers as they no longer need to replenish semiconductor inventories at the same rate. That's why the market got so stressed when Micron's third-quarter earnings report was delivered at the end of June.
Micron sells memory and storage chips to a broad range of customers, including data centers, smartphones, PC, industrial technology, autos, and other markets. So when its management said, "Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023," it was time to start worrying.
Source Fool.com
