Chip Stocks Up in Rare Show of Strength

The battered shares of some U.S. chip makers showed some strength today as Micron, SanDisk and Spansion all traded higher. Although some investors are speculating that today’s action may be demonstrating signs of a bottom, analysts were a bit less enthusiastic.

One analyst told Chip Stocks Blog that stock action usually precedes fundamentals but to demonstrate a strong bottom, we must see some better proof that fundamentals are about to change. Unfortunately, there are mixed signals. Dram chip prices are suffering from an oversupply and NAND flash prices are suffering from weak demand.

We’ll see if the strength in the chip makers continues through the rest of the week.