Lattice Semiconductor Shares Drop 7.8% on HBM Expansion Slowdown Report
Shares of Lattice Semiconductor (LSCC) dropped 7.8% in afternoon trading following a report that South Korea's SK Hynix is slowing its high-bandwidth memory (HBM) expansion, raising concerns in the AI-chip complex.
Key Numbers
Shares of Lattice Semiconductor (NASDAQ:LSCC) fell 7.8% in afternoon trading after a report that South Korea's SK Hynix is slowing its high-bandwidth memory (HBM) expansion rattled the AI-chip complex.
Potential Causes
According to the report, SK Hynix, a major supplier of HBM chips used in AI applications, is scaling back its expansion plans. This decision may signal a slowdown in demand for AI chips, negatively impacting semiconductor companies tied to the sector, including Lattice Semiconductor.
Context
Prior to this decline, Lattice Semiconductor's stock had shown mixed performance over the past month, dropping about 5% in the last two weeks. This decline comes amid ongoing uncertainty in the global semiconductor industry.
Similar Moves in the Sector
Losses were not limited to Lattice Semiconductor; other companies in the sector such as NVIDIA (NVDA) and AMD (AMD) also declined, albeit by smaller percentages. This reflects the close correlation among companies in the AI chip space.
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