Semiconductor Sales will Show Modest Growth in 2011 (INTC, AMD)
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Price: $95.04 -2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.4%
Revenue Growth %: +11.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.4%
Revenue Growth %: +11.1%
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Growth in the semiconductor market will slow in 2011 after a blowout recovery in 2010 as the recovery in the global economy and electronics market moves forward, according to research firm iSuppli.
Revenue for the global semiconductor industry, which includes major companies like Intel Corp. (NASDAQ: INTC) and Advanced Micro Devices Inc. (NYSE: AMD), will reach $317.4 billion, up 5.1 percent in 2011. The growth next year will follow a 32 percent surge in 2010. Growth will continue with the recession falling off, reaching $357.4 billion on 2014.
“Despite the resumption of growth in the semiconductor markets, enthusiasm is muted at best as the ghost of the recent economic downturn continues to haunt the industry,” said Dale Ford, senior vice president for market intelligence at iSuppli. “Several factors bearing witness to the wretched effects of the recession—among them stubborn unemployment, tight credit availability and the lack of recovery in the housing market—are hindering consumer spending, the largest contributing factor to the U.S. Gross Domestic Product.”
The report from iSuppli added that over the next five years the data processing segment and wireless communications will show stronger-than-average growth.
In addition, the report states that the LCD-TV segment will show weakness givene the rising inventories in North America and China.
Revenue for the global semiconductor industry, which includes major companies like Intel Corp. (NASDAQ: INTC) and Advanced Micro Devices Inc. (NYSE: AMD), will reach $317.4 billion, up 5.1 percent in 2011. The growth next year will follow a 32 percent surge in 2010. Growth will continue with the recession falling off, reaching $357.4 billion on 2014.
“Despite the resumption of growth in the semiconductor markets, enthusiasm is muted at best as the ghost of the recent economic downturn continues to haunt the industry,” said Dale Ford, senior vice president for market intelligence at iSuppli. “Several factors bearing witness to the wretched effects of the recession—among them stubborn unemployment, tight credit availability and the lack of recovery in the housing market—are hindering consumer spending, the largest contributing factor to the U.S. Gross Domestic Product.”
The report from iSuppli added that over the next five years the data processing segment and wireless communications will show stronger-than-average growth.
In addition, the report states that the LCD-TV segment will show weakness givene the rising inventories in North America and China.
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