- Buoyed by strong mobile chip demand, healthy DRAM/flash prices, and a PC inventory refresh, global chip sales will rise 9.4% in 2014 $353.2B, estimates IHS. That growth rate is soundly above 2013's 6.4% and the highest since 2010, when the industry was recovering from a gut-wrenching recessionary downturn.
- IHS expects 22 of the industry's 28 sub-segments to see positive 2014 growth. Analyst Dale Ford: "While the upswing in 2013 was almost entirely driven by growth in a few specific memory segments, the rise in 2014 is built on a widespread increase in demand for a variety of different types of chips."
- Growth is expected to slow a bit in 2014. Believing "the outlook into 2015 is generally tracking typical seasonality," JPMorgan forecasts 3%-5% 2015 industry sales growth and 6%-10% earnings growth. Jefferies expects 2015 growth of 5%.
- Jim Cramer made a bull case for chip stocks earlier this week, arguing the semi consolidation wave that contributed to the industry's huge 2014 gains is far from over. "I think the logic of this consolidation is so powerful that within a few years, there will be hardly be any small semiconductor companies left."
- With three trading days left in the year, the Philadelphia Semi Index (NASDAQ:SOXX) is up 31% YTD.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG