IBM's crash is a bullish signal - for the semiconductor industry
u/ethereal3xp ·
Reddit — r/stocks
· July 16, 2026 at 00:18
· ⬆ 23 pts
· 💬 54 comments
| View on Reddit ↗
No analysis available.
Score23
Comments54
Upvote %61%
▶ Full Post Text
IBM crashed and blindly took down the semiconductor industry. When in reality, it should have been a bullish signal.
1. IBM fell due to weak sales forecasts, driven primarily by the soaring cost of memory.
2. This doesn't mean the semiconductor industry is in trouble. Instead, it indicates that memory chips and next gen CPUs/GPUs are becoming scarcer and more expensive to obtain.
3. Companies like Nvidia, AMD, AVGO, and Micron are still going to remain in high demand, with a lineup out the door.
4. While IBM risks losing customers to competitors if they try to pass these rising hardware costs along, chipmakers hold all the pricing power.
That is the core difference between IBM and the semis.
Unless IBM achieves quantum supremacy first, allowing them to command monopoly pricing, they simply cannot pass these soaring memory costs onto their clients.