Gartner: Semiconductor Stocks Will Have a Correction in 2011
Gartner Inc. (NYSE:IT) announced from a new report today that semiconductor (NYSE:SMH) days of inventory (DOI) will plateau in the third quarter of 2011. The research company sees DOI at worrisome levels due to current business conditions as well as weaker than expected consumer and business spending. Gartner expects a correction for the semiconductor industry in late 2011.
In a press release distributed by the research group, they noted the following:
“The semiconductor industry (NYSE:SMH) entered the third quarter of 2011 with moderately high levels of inventory,” said Gerald Van Hoy, senior research analyst at Gartner. “Current levels are too high given the weakening economic sentiment, and the industry must rein in production growth and take action to reduce accumulated inventory. We expect that these actions will occur during the next few quarters with production and sell-through expected to return roughly to balance by the second quarter of 2012.”
Keep an eye on semicondictor stocks on the news: Advanced Micro Devices (NYSE:AMD), Broadcom (NASDAQ:BRCM), Texas Instruments Inc. (NYSE:TXN), Intel Corp. (NASDAQ:INTC), National Semiconductor Corp. (NYSE:NSM), Nvidia (NASDAQ:NVDA), ON Semiconductor Corp. (NASDAQ:ONNN), Analog Devices Inc. (NYSE:ADI), and Intersil Corp. (NASDAQ:ISIL).