Semiconductor stocks stand to hand back all their COVID-19 pandemic gains, according to one analyst, as the industry continues to work its way by degrees through an inventory glut that materialized after two years of shortages.
That leaves the other “half” of the industry, where demand has persisted but is now showing signs of slowing, especially in the increasingly important data-center market, sustained by public-cloud providers like Amazon.com Inc. AMZN , Microsoft Corp. MSFT , and Alphabet Inc.’s GOOG GOOGL Google. Over the past 12 months, however, the SOX index is only down 14% — given 2023’s strong year out of the gate with a 17% gain — while the Dow Jones Industrial Average DJIA has slipped 0.7% over the past 12 months, the S&P 500 index SPX has declined 9%, and the tech-heavy Nasdaq Composite Index COMP has fallen 16%.
That would punch the SOX down to around 2,075, a level not seen since July 2020, when semiconductors were on the uptick given shortages created by the COVID-19 pandemic and a month before Intel’s bombshell announcement that its next-gen chips would be delayed, Inventory problems have become a visible plague on the industry as seen in earnings reports from Intel and AMD.
The market got you to beleive that scarcity makes prices go down.. they are so good
Boycott Tesla
Perfect industry to buy and hold after the drop
RedDogT3 Ok. It’s time to buy.
If this prolongs without the biggest market in the world, one would think that the days ahead would be very gloomy 🤣
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Source: BusinessInsider - 🏆 729. / 51 Read more »