Chips Look Cheap But Demand Woes Keep Bulls Away

Semiconductor stocks are trading at bargain prices, but investors are still staying away as signs of cooling demand pile up.

Things don’t look good for the sector: Micron Technology Inc. gave a disappointing forecast, while Intel Corp. said the macroeconomic environment is weakening. Prices have dropped for memory chips, as well as for Nvidia Corp.’s graphics cards. Research firm Gartner Inc. expects PC shipments to fall 9.5% in 2022.