Modest Semiconductor Sales Stunt Chip Stocks
Today the Semiconductor Industry Association (-SIA-) released its monthly report on worldwide sales of semiconductor products. For the month of May, 2011, sales totaled $25 billion, a 1.8% increase from $24.6 billion in April sales, and 1.3% growth rate YTD. SIA Pres. Brian Toohey commented, “Taking into consideration macroeconomic factors impacting consumer confidence, the steady but modest growth that the industry demonstrated in May is encouraging. Global demand for high-end electronics, the continuing proliferation of semiconductor technology into a wider range of products, growth in emerging economies and better than expected recovery from the Japan earthquake will be continued drivers of industry growth in 2011.”
According to the report, growth in demand for tablets, e-reader products, and smart phones continues to be a boon for chip-makers. Yearly sales expectations were maintained in the new data, with global industry sales expected to, “increase 5.4 percent for 2011, 7.6 percent in 2012 and 5.4 percent in 2013, with a 3-year compound annual growth rate of 6.13 percent from 2010 to 2013.”
Chip stocks are did not take well to the news: Texas Instruments (NYSE:TXN) down 1.79%, Intel (NASDAQ:INTC) down .4%, Applied Materials (NASDAQ:AMAT) down 1.5%, NVIDIA Corp. (NASDAQ:NVDA) off 1.64%, Semiconductor HOLDRs ETF (NYSE:SMH) sliding 1.04%, KLA-Tencor (NASDAQ:KLAC) down 2%, and Broadcom (NASDAQ:BRCM) down .4%. Winners include Marvell Tech. (NASDAQ:MRVL) up 0.5%, Spreadtrum Communications (NASDAQ:SPRD) up 2.18%, and Advanced Micro Devices (NYSE:AMD) up .4%.