Qimonda Running on Fumes

SAN FRANCISCO -- Times are tough for semiconductor stocks.

But nowhere is the pain more acute than at memory chip maker Qimonda(QI Quote).

On Wednesday, the company's stock was trading at 19 cents, which means it's down a staggering 98% from its 52-week high.

With the DRAM market suffering one of its worst downturns in years, and some of Qimonda's most attractive assets having recently been snapped up by Micron(MU Quote), Wall Street seems to have concluded that what's left of Qimonda is essentially worthless.

Qimonda's market cap is now a miniscule $65 million.

Meanwhile, Germany's Infineon Technologies(IFX Quote), which spun off Qimonda as a separate company in 2006, is having difficulties unloading the 77% stake it still owns in the troubled chipmaker even with its rock-bottom valuation.

On Tuesday, Infineon CEO Peter Bauer reportedly told journalists in Germany that the company is still in negotiations to sell its Qimonda stake. According to a Dow Jones Newswires report, Bauer said there are fewer than five potential buyers, whom he declined to name, for the Qimonda stake.

Qimonda's stock sank 52% on Tuesday, or 21 cents, to close at 19 cents. The stock experience a massive spike in trading volume on Tuesday -- more than 18 times the average volume in the past three months -- which suggests that a large investor may have given up on the stock and dumped its shares.

The company's 52-week high of $9.90 was attained last Oct. 31.