Signs are piling up that the tech downturn may be deeper and longer-lasting than feared.
After years of record capital spending, chipmakers are warning on a weekly basis that demand is sputtering. In the latest sign of trouble, Samsung Electronics and Advanced Micro Devices (AMD) reported disappointing results within hours of each other that widely missed projections.
Samsung — the world’s largest memory chip maker — reported a 32% dive in operating income, while PC-processor chipmaker AMD said it will miss its earlier forecast by about $1 billion. Analysts’ reactions ranged from "breathtaking” to "Uff-da!”