Excerpt from our One Page Annotated Wall Street Journal Summary (which you can get emailed to you every morning by signing up here):
May Chip Sales Rose 9.4% on Solid Demand
Summary: The Semiconductor Industry Association reported that May chip sales rose 9.4% by value, driven by cellphones and other consumer electronics. Sales of analog and digital signal processor chips, both used in cellphones, rose 22% and 14% respectively. PC microprocessor chip sales fell 2% "reflecting an inventory correction and aggressive pricing".
Comment on related stocks/ETFs: Incrementally positive for the largest play on cellphone chips, Texas Instruments (NYSE:TXN). Incrementally negative for Intel (NASDAQ:INTC) and AMD (NYSE:AMD). Although it's pulled back significantly recently, AMD's stock still seems to reflect more optimism about growth than Intel's, and could therefore be hit harder by tepid revenue growth. Continued growth in the cellphone market will exacerbate doubt about the wisdom of Intel's sale of its communications chip business.