Chipmakers Post Weak Results, Reduce Spending Amid Recession Fears

Multiple chip manufacturers are posting disappointing financial results and cutting down on spending—developments that are negatively affecting the share prices of these firms.
AMD, for example, recently announced its preliminary third-quarter sales, missing projections by more than $1 billion. The third-quarter revenue is expected to be $5.6 billion, below the company’s forecast of $6.7 billion. Samsung, the largest memory chipmaker in the world, has reported a 32 percent fall in operating income. Nvidia, the biggest graphic processing unit manufacturer, announced a 44 percent decline in demand in the last quarter. In July, Intel reported a $2.6 billion loss in revenue.
Memory chipmakers like Kioxia Holdings Corp. and Micron Technologies Inc. are scaling down spending as well as output to stabilize falling prices. Micron warned last week about tougher times ahead, announcing a reduction of more than 30 percent in its capital expenditure investments next year….