Monolithic Power Got Crushed by Edgewater Report. Now It's Micron's Turn. -- Barrons.com

Dow Jones11-12

By Adam Clark

Two semiconductor stock takedowns in as many days. First Monolithic Power Systems and then Micron Technology shares have been knocked by separate reports from the same research outfit.

Monolithic Power dropped 15% on Monday and was falling a further 2% in premarket trading on Tuesday after market-intelligence firm Edgewater Research suggested the company could lose part of its business with chip maker Nvidia, according to industry analysts.

Monolithic and Nvidia didn't immediately respond to requests for comment on the report. However, analysts at Needham said they had spoken with Monolithic Power management, who confirmed they weren't aware of any technical issues that would prevent its components from shipping in Nvidia's Blackwell AI chips and that it hadn't received any cancellations from Nvidia.

On Tuesday, it was Micron's turn, as the memory chip maker fell 3.2% in premarket trading, reportedly following a note from Edgewater Research.

"Edgewater (after destroying MPWR yesterday) is out with a CAUTIOUS DRAM [dynamic random access memory] call today...expect selling pressure (and likely shorts pressing) Micron today," wrote Mizuho Securities analyst Jordan Klein in a research note.

Write to Adam Clark at adam.clark@barrons.com

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November 12, 2024 09:24 ET (14:24 GMT)

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Comments

  • PrimeBlue
    11-12
    PrimeBlue
    DRAM prices are going strong. Just take a look at the spot market trend. The HBM segment is causing a shortage of wafer for DRAM and is causing a market supply shortage. Prices are going to only increase as the industry has yet to make up for the high wafer demand from HBM. This is a good chance to get into MU. 
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