The Organization of the Petroleum Exporting Countries (OPEC) is definitely messing up the shares price of IT companies. We usually check how companies like Nvidia, Intel, AMD, Google and Apple are doing and we can say that it’s not all pretty.
Let’s start with AMD. On the 17th of June, AMD was selling for a solid $7.88 a share and it managed to plummet all the way down to $5.65 as of yesterday. This is close to a 40 percent drop in less than two weeks. We don’t even need to tell you how scary this sounds.
Nvidia fell from $25 in early June to $18.85 as of yesterday. This is a 32 percent loss in about a month's time.
Intel during the same period fell less radically from $23.87 in early June to the current $21.57. Intel fell some 10 percent, which is much better than two other chip companies.
The worst thing is that this drop in share value is directly linked with the incredibly high prices of oil and the fact that U.S. economy is not doing well. We believe that this is a temporary thing, as all three companies are doing better than Wall Street believes.
They have some issues, such as big shortage of Atom CPUs for the rest of Q2 if you are Intel, lack of a good CPU if you are AMD or a shake up in GPU dominance if you are Nvidia.