Micron, Chip Stocks Fall on Report Citing Delays

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A report from Susquehanna Financial Group says that the order-filling time for chipmakers now exceeds 20 weeks.

Shares of Micron Technology  (MU) – Get Report, Nvidia  (NVDA) – Get Report and other major semiconductor companies fell on Tuesday after a report that the order-filling time for chipmakers now exceeds 20 weeks.

The report came from Susquehanna Financial Group, as reported by Bloomberg. 

The order-filling time represents the period from ordering a semiconductor to receiving it. That metric added on more than eight days in July, putting the total at 20.2 weeks, Susquehanna said.

The gap already stood at the highest in the four years that Susquehanna has compiled the numbers.

Businesses from automakers to consumer-electronics companies are suffering from the chip shortage. Carmakers are expected to miss out on $100 billion in sales due to the squeeze, Bloomberg reports.

Micron recently traded at $75.81, down 5.5%; Nvidia at $200.08, down 1.4%; Qualcomm  (QCOM) – Get Report at $146.07, down 0.6%; and Texas Instruments  (TXN) – Get Report at $190.09, down 0.2%.

Last week, Micron announced its first quarterly dividend: 10 cents a share.

The company has “a robust product portfolio, enhanced profitability, and a strong, investment grade balance sheet,” said Micron Chief Executive Sanjay Mehrotra.

As for Nvidia, Bloomberg reported last week that an assessment of its planned $40 billion acquisition of Arm Holdings contains worrying implications for national security, and the U.K. is currently inclined to reject the takeover.

While TheStreet.com Founder Jim Cramer wants the deal to go through, he said no matter the result, Nvidia will come away with a win. 

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