“With Intel and tech as a whole in mind, given the extraordinary semis rally yesterday, I thought it prudent to take a look at companies whose fortunes are so inextricably linked to one of the largest companies in the world,” Brad Olesen writes for Bloomberg. “You would assume they would have a difficult time surpassing that which they are dependent upon, but in the case of the Apple supply chain, it defies logic.”
“You can debate when the market really knew Apple was having difficulty towards the end of 2018 (was it when Austrian light sensor maker AMS AG cut guidance in November? Or when Qorvo did?), but for simplicity’s purposes, let’s put the responsibility on Cirrus Logic, which derives 82% of its revenue from the iPhone maker as of its latest filings,” Olesen writes. “But… some of the highest profile names impacted by the worsening state of affairs are poised to recover, while Apple remains subdued.”
“Storage and memory makers Micron and Western Digital, are poised to erase even more of those losses when trading opens Friday,” Olesen writes. “Western Digital’s third quarter forecast sent shares up more than 10 percent in the post market, helping peer Seagate Technology. Mizuho wrote that WDC’s “potential bottoming” is driving optimism. Micron is indicated up about 2 percent.”
Read more, and see the chart, in the full article here.
MacDailyNews Take: Obvious, for AAPL, it’s like the epic warning happened daily instead of just once. Given the wild overreaction, it’s likely to be a while until Apple shares begin to recoup in earnest. Apple’s earning results, guidance, and conference call on January 29th will illuminate the picture more fully.