The pandemic-era boom in semiconductors that spurred a global shortage is showing its first signs of weakness!
driven by a slump in PC and smartphone sales
Intel and Nvidia are among the semiconductor makers warning of rockier times ahead after two years of surging demand
The frenzy to buy laptops and other gadgets early in the C-19 pandemic has vanished as inflation dissuades people from upgrading machines that they bought in the past couple of years amid the shift toward remote work and learning.
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The slowdown in crypto mining is affecting chip maker Nvidia, which is cutting back on hiring.
Intel temporarily froze hiring in its PC-chip division in June, among other belt-tightening measures.
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.
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.
chip companies’ giants Intel Corp. and Nvidia Corp., are warning of rockier months ahead after two years of surging demand across their product lineups, pointing to a chillier consumer climate.
Chip executives, computer retailers and distributors say the market malaise has gotten worse in recent months, as inflation hits 8.8% in U.S , the highest in more than four decades, leading the Federal Reserve to raise interest rates.
Personal computer shipments are expected to retreat by 8.2% this year to 321.2 million units, according to International Data Corp., which cut its forecast in June.
PC shipments have been hit by not just softening appetite for new devices, but also supply-chain snarls from Covid lockdowns in China, and the fallout from Western sanctions on Russia after the country’s invasion of Ukraine.