Semiconductors Winners And Losers At The Start Of 2023

Jan. 05, 2023 10:33 AM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
MarketGyrations
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Summary

  • The year 2022 was bad for semis even though business was mostly good, which provides an important clue as to how 2023 could play out.
  • Fundamentals in the semiconductor industry deteriorated as 2022 went by, but stocks did the opposite by getting better heading into 2023.
  • There are a number of possible headwinds that could cause problems for semis in 2023, but a down year is still not a given.
  • The most likely outcome for semis in 2023 is lower prices, but the Fed could be the wild card that shakes things up.

Computer CPU chip isolated on white background

Andres Victorero

The year 2022 was quite the change for semiconductor stocks. The semiconductor market is projected to have expanded in 2022, but semis nonetheless underperformed, finishing with sizable losses in 2022 after three consecutive years of strong gains. In fact, what happened in 2022

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