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J.P. Morgan maintained an "underweight" rating and said it believes the flash industry is entering a downturn.
ISuppli analyst Nam Hyung Kim says Spansion's decline raises the specter of acquisition and signals continued consolidation for the flash industry.
J.P. Morgan said, "Despite the recent rally in AMD stock, we have remained 'underweight' AMD due to our belief that the flash industry is entering a downturn and AMD should begin to lose money since flash is almost half of the company's revenue".
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At the time, the flash sales industry was nascent, so many, including the fashion industry, had no idea what a flash sale was.
Flash memory industry has showed remarkable steady progress during the last few years.
The flash memory industry has used a number of approaches to keep up with Moore's law without having a new technology.
Investors cheered the move, not just for Intel, but because further consolidation of the flash memory industry could lead to more stable pricing, according to Christopher Caso, an analyst with the Friedman, Billings, Ramsey Group.
The riskiest part of his strategy was licensing the SuperFlash technology to one and all in exchange for royalties in the hope that it would become the standard for the flash memory industry.
J.P. Morgan said it believes the flash memory industry is entering a downturn and is concerned AMD won't be able to lower operating expenses and capital expenditures due to aggressive competition from Intel.
Nordstrom acquired competitor HauteLook in 2011 for $270 million, back when the outlook for the "flash sales" industry was viewed more favorably. .
Yeah, well thanks to the iPhone and new iPods that are due out later this year, Apple is causing the flash memory industry to raise its prices again.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com