“Intel has already announced plans to cut costs by US$3 billion ($4.01 billion) this year and to delay some equipment purchases. We suspect that AEM’s margins may be hurt if key customers are not faring well,” Seet writes.
Maybank Securities analyst Jarick Seet has downgraded AEM Holdings to “sell” from “hold” previously.
In his report dated Jan 8, the analyst sees that the company’s margins could be squeezed amid chipmakers cutting costs and lowering their spending plans.
