Global semiconductor sales growth is now slowing down Can Fei Ban Rongjing continue?

Against the backdrop of the global chip shortage, strong semiconductor demand and sales performance have driven the Philadelphia Semiconductor Index up about 35% this year. However, as the industry data shows signs of slowing sales growth, whether Fei Ban can continue the prosperity of the past 3 years can inevitably raise questions.

Over the past 2 years, fees have risen by more than 50% in the half year, and including this year, it has outperformed the NASDAQ 100 index for three consecutive years and made the cumulative return on investment for three years, including dividends, close to 250%, surpassing the performance before the burst of the technology bubble in the late 1990s.

After the unprecedented chip shortage has pushed the production of home appliances, automobiles and other commodities into a dilemma, recent data show that semiconductor demand may be about to peak.

Citing statistics from the Semiconductor Industry Association (SIA), Bloomberg pointed out that the growth force of global chip sales showed signs of slowing in October, not only declining for three consecutive months, but even returning to the level of May.

Global semiconductor sales growth is showing signs of slowing (Photo: Bloomberg)

Bloomberg reported that considering that the demand for chips from manufacturers such as automobiles is still greater than supply, investors will not easily bear the semiconductor industry, but will still pay close attention to any obstacles that may weigh on the strong performance of semiconductor stocks, including inventory backlogs, high valuations and rising interest rates.

Mirabaud Securities analyst Neil Campling believes that for Fei Ban, next year will be a year of struggle, and Fei Ban may not be able to regain the glory of the past 3 years.

Campling said: "At some point next year, we will find that some of the current undigested orders are duplicate orders. On the other hand, Chen Fuyang, CEO of AVGO-US, also warned at the earnings conference last week that some areas of the semiconductor market have overheated.