Semiconductor Stocks Limp into Year-End as Forecast Cut Again (INTC) (AMD)
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Rating Summary:
21 Buy, 32 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 3 | New: 2
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Semiconductor revenue is expected to decline 2.3 percent in 2012, according to IHS. The new figure shows a steep descent compared to bleak August and September projections. 2012 will mark the first annual decline for the global semiconductor industry since 2009.
"Five out of the six major application markets for semiconductors—including the key computer segment—are expected to contract in 2012, pulling down the overall performance of the chip market," said Dale Ford, senior director, electronics and semiconductor research for IHS.
Among various semiconductor application markets, data processing, consumer electronics, industrial, wired communications and automotive segments all are expected to deteriorate in 2012, with the wireless segment set to expand.
"An extremely weak global economy resulted in poor demand for electronics. As a result, the semiconductor industry slipped from stagnation in the first half of 2012 to a slump in the second half. Still, one of the few silver linings is that the fourth quarter is expected to bring a mild recovery in year-over-year growth, setting the stage for a market rebound in 2013," added Ford.
The IHS iSuppli preliminary AMFT predicts semiconductor revenue will expand by 8.2 percent in 2013 if the small improvement in worldwide GDP growth forecast for 2013 holds up. Needless to say, that’s a big if.
In either case, for struggling names like Intel (Nasdaq: INTC) and battered stocks like Advanced Micro Devices, Inc. (NYSE: AMD) 2012 can't end soon enough.
"Five out of the six major application markets for semiconductors—including the key computer segment—are expected to contract in 2012, pulling down the overall performance of the chip market," said Dale Ford, senior director, electronics and semiconductor research for IHS.
Among various semiconductor application markets, data processing, consumer electronics, industrial, wired communications and automotive segments all are expected to deteriorate in 2012, with the wireless segment set to expand.
"An extremely weak global economy resulted in poor demand for electronics. As a result, the semiconductor industry slipped from stagnation in the first half of 2012 to a slump in the second half. Still, one of the few silver linings is that the fourth quarter is expected to bring a mild recovery in year-over-year growth, setting the stage for a market rebound in 2013," added Ford.
The IHS iSuppli preliminary AMFT predicts semiconductor revenue will expand by 8.2 percent in 2013 if the small improvement in worldwide GDP growth forecast for 2013 holds up. Needless to say, that’s a big if.
In either case, for struggling names like Intel (Nasdaq: INTC) and battered stocks like Advanced Micro Devices, Inc. (NYSE: AMD) 2012 can't end soon enough.
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