A JP Morgan analyst has stated that PC orders are “falling off a cliff”, which has lead to declining stock prices for a number of vendors.
According to Daily Finance, the fall in orders is the result of higher levels of stock in the supply chain as demand weakens in the US and Europe and slows down in China.
As a result, Intel, AMD, Micron Technology and Nvidia have all seen their stock decline by over three per cent, leading to many of them revising and downgrading their revenue forecasts.
“Although there is a possibility order rates could recover, we view this as unlikely given increased inventory in the supply chain and weakening demand in the US and Europe and slowing demand in China,” said JP Morgan analyst Christopher Danely.
“We continue to be cautious on the space due to the large amount of capacity coming on line combined with softening demand.”
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