Monday, October 4, 2010

Weak server chip shipments on the horizon, analysts say

The server market is showing signs of weakening, which could lead to a downturn in server chip shipments, further affecting the revenue of chip makers already hampered by lackluster demand for home PCs, financial analysts said Friday.

"Near term, we believe weak PC trends and server-related customer consolidation could lead to weak server orders because of uncertainty in current server suppliers' existing and future product road maps," said Apurva Patel, a financial analyst at Ticonderoga Securities, in a research note sent on Friday morning.

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