The trade group for US chipmakers also forecast fourth-quarter sales would be little changed from the third quarter and said it still expects year-on-year growth of at least 28%. This does show there continues to be some amount of growth but probably not as much as you would expect from the normal seasonality of this time of year, David Wong, a semiconductor analyst at AG Edwards, said of the month-over-month data.
Chip stocks were mostly flat in morning dealings on a shortened trading day. The market was closed on Thursday for the Thanksgiving holiday. Shares of Intel Corp. closed down 40 cents, or 1.7%, at $23.21 on Nasdaq, but Wong attributed the decline more to recent volatility in the stock than to investor reaction to the semiconductor report.
When you look at semiconductors in aggregate, there are a few stocks that are slightly up, some that are slightly down, he said. It doesnt look to me like theres any significant impact on any stocks in particular.
According to the industry data, digital signal processor sales were up 8.5% in October from September, microprocessor sales rose 6.4%, and dynamic random access memory (DRAM) sales were up 2.8%. Those figures are signs that excess inventories of these products have also been worked out of the supply chain, SIA President George Scalise said in a statement.