Growth slowed in the chip space for the fifth straight month in October.
The Semiconductor Industry Association reported earlier this week that sales grew just 12.7 percent. It was the smallest gain since December 2016, and continued a pattern of weakness that began in June:
- May’s growth was 21 percent.
- June’s growth was 20.5 percent
- July’s growth was 17.4 percent
- August’s growth was 14.9 percent
- September’s growth was 13.8 percent.
- October’s growth was 12.7 percent.
Slowing smart-phone orders, highlighted by a selloff in Apple (AAPL), are big part of the trend. Several companies have also issued disappointing results or guidance since our last report. Those include Skyworks Solutions (SWKS), Nvidia (NVDA), Qorvo (QRVO), Applied Materials (AMAT) and Cirrus Logic (CRUS).
In conclusion, semiconductors have lagged the broader market since the spring. And news from the industry shows the weakness is justified.