All articles tagged with #supply glut
Oil prices dropped over 2% due to concerns about a global supply glut and ongoing geopolitical tensions, particularly related to the Russia-Ukraine conflict, with the market also watching potential peace negotiations that could impact sanctions and supply.
Oil prices dropped over $1 per barrel due to concerns about a global supply glut and reduced war risk premiums, amid ongoing hopes for a Ukraine peace deal that could impact sanctions and oil supply. Despite recent rebounds from lows, prices are on track for their steepest annual decline since 2020, with supply exceeding demand and geopolitical factors influencing short-term prices.
Contract chipmaker GlobalFoundries has projected fourth-quarter profit above analysts' estimates, indicating a potential easing of the supply glut in the semiconductor industry. The company's shares rose after its July-September quarter earnings beat expectations. This positive forecast aligns with recent signals of a recovery in the industry, as customers rebuild inventory after clearing excess stock caused by a post-pandemic demand drop. GlobalFoundries' CEO stated that they are collaborating with customers to support their efforts to reduce inventory levels. The company expects adjusted profit per share to be in the range of 53 cents to 64 cents in the next three months, surpassing estimates.
Western Digital has announced plans to spin off its flash memory business after talks of merging the unit with Japan's Kioxia stalled. The split will create two publicly traded firms, with Western Digital focusing on its traditional hard-disk drive business. The move comes in response to demands from activist investor Elliott. The flash memory unit has been grappling with a supply glut, and the merger talks aimed to address this issue. However, the latest attempt at the deal stalled due to opposition from Kioxia investor SK Hynix. Western Digital's CEO stated that a stand-alone separation is the right next step for the company, and the planned separation is targeted for the second half of 2024.
Samsung, the world's largest memory chip maker, has reported its lowest operating profit in 14 years for the second consecutive quarter, with a drop of 95.74% from a year ago. The poor performance of its chip division, caused by a supply glut in the memory chip market, is expected to be the main reason for the profit drop. However, Samsung's smartphone business is expected to have performed well. The company remains optimistic about the long-term outlook for the memory chip market due to trends such as AI and high-performance computing.