The fading of the crypto boom has also put an end to early pandemic scenes of people camping outside computer stores to buy chips for cryptocurrency mining and high-end videogaming.
Memory maker Micron Technologies Inc last week issued a muted sales outlook as chief executive Sanjay Mehrotra warned that"the industry demand environment has weakened," with PC and smartphone sales declining.Chip executives, computer retailers and distributors say the market malaise has gotten worse in recent months — more sluggish than many were expecting at the beginning of the year as US inflation hit 8.
Now, the retailer has well-stocked shelves, and the rationing his company introduced during the pandemic was dropped this year. Advanced Micro Devices Inc chief executive Lisa Su said last month that the company already had taken a conservative view of the PC segment for this year and expects computer demand to be roughly flat over the next few years.
"Semi downturns happen every 3-4 years, and we could be due for another one," Bank of America analysts said last week.Microsoft Corp lowered its earnings outlook in June, citing a stronger dollar that has dented the value of its sales in foreign countries, and the company has slowed hiring.