Universal Display stock slides on coronavirus fears

Universal Display stock slides on coronavirus fears

Universal Display Corp. shares are off more than 6% in Monday trading after an analyst flagged it as a company that could be “adversely affected” by the coronavirus crisis. “We estimate ~1/3 of China’s total OLED manufacturing capacity is located in Hubei province, including its capital city, Wuhan,” Susquehanna’s Mehdi Hosseini said in a note to clients. “Emitter is the key material used in the manufacturing of OLED displays. Universal Display is the key supplier here, which could be adversely impacted by the inability to ship products to Wuhan.” Hosseini also wrote that Western Digital Corp. could actually see positive short-term impacts from the disruption as China’s Yangtze Memory Tech Co. is based in Wuhan and manufacturing issues there could lead to “tighter” NAND supply. However, Western Digital shares are being punished in Monday’s session along with chip stocks more broadly. The stock is off 4.6% while the PHLX Semiconductor index is down 3.7%. The S&P 500 is down 1.5%.

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