These 3 tech stocks fell this week
Source: Wikimedia Commons.
From June 23 to June 27:
• 55% of tech stocks with more than $300 million
market caps declined this week.
• Advanced Micro Devices, NQ Mobile, and
Maxwell Technologies fell further than most.
• Their weekly declines ranged from reversible
(AMD dropped, then bounced back) to drastic
(NQ Mobile’s never-ending scandal slashed
another 16% off the share price).
Advanced Micro Devices
plunged on Monday
morning, then immediately
started climbing back.
A final push on Thursday erased the week’s bad memories.
• The microchip designer was downgraded by analyst
firm Pacific Crest, triggering Monday’s drastic drop.
• Analyst Michael McConnell argued that AMD is tightly
bound to consumer PC systems.
• Thus, the corporate PC rebound reported by Intel and
others should not help AMD at all.
• The PC market is expected to shrink by 6% overall in
2014, with nearly all of this decline falling in the
Help from unexpected quarters
• AMD investors let the Pacific Crest downgrade slowly fade
into the background, until Intel offered a helping hand.
• On Thursday, an AMD executive revealed that Intel had
asked for early access to AMD’s graphics programming
platform, known as Mantle.
• AMD turned Intel away, telling the larger rival to wait for
version 1.0 like everybody else.
• Investors loved seeing AMD in the driver’s seat for once,
and the week ended on a high note.
What’s going on?
• This stock suddenly spiked in early March, when electric
vehicle builder Tesla Motors was said to explore placing big
capacitor orders from Maxwell.
• But the rumor has not materialized, and Maxwell’s investors
are finally losing hope for a big Tesla deal.
• With quick power bursts and large storage capacities,
Maxwell’s ultracapacitors have the potential to change the
game for vehicles powered by fuel cell and battery systems.
• But Tesla is sticking to its regular battery structures, at least
mobile apps and
service provider NQ
Mobile continued a
four-month slide with
another 17% haircut.
• As you saw two weeks ago, NQ Mobile has been
under investigation on fraud charges.
• The company reportedly came up clean, but
investors are still waiting for a full report of the
• They are also still looking for an increasingly
overdue fourth-quarter report.
• Uncertainty is painful. If NQ truly is innocent,
management needs to publish the evidence.
Are you ready
for the next
“Next Big Thing”
In mobile computing?
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