Chip Sector Ignores Ominous Predictions
from the blue-chips dept
Earlier this week, the Semiconductor Industry Association dramatically ratcheted down its expectations for the industry, slicing its growth estimates from 10% to 1.8% over the next year.. The problem isn't volume, but price, as exemplified by the brutal price war going on between Intel and AMD. But as Om Malik points out, the bad news on the chip front caused nary a reaction on Wall Street, not even among chip stocks. Obviously, chips aren't the sexiest industry in the tech sector anymore, so it's not surprising that the news didn't make the whole NASDAQ swoon, like it might have in the 90s. Still, it was a bit puzzling that the news didn't even seem to effect the companies directly involved. Om posits that it could be due to the maturity of the industry and the fact that investors no longer see the stocks as swinging wildly depending on where they are in the cycle. It's also possible that the the market was ahead of the curve, already factoring price erosion. Seeing as price wars have been talked about for some time, it seems likely that the SIA is simply late to the story.