Global semiconductor sales remained strong in January, up 26.8% Y/Y

Global semiconductor sales rose 26.8% Y/Y in January to $50.7B, a 0.2% M/M decline, according to new data from the Semiconductor Industry Association.

SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

"Following record sales and units shipped in 2021, global semiconductor sales remained strong at the beginning of 2022, reaching the second-highest-ever monthly total in January. Global sales in January increased by more than 20% for the tenth consecutive month on a year-to-year basis, and sales into the Americas increased by 40.2% year-to-year in January to lead all regional markets,” said John Neuffer, SIA president and CEO.

Regionally, Y/Y sales increased across all markets: Europe +28.7%, China +24.4%, the Americas +40.2%, Asia Pacific/All Other +21.0%, and Japan +18.9%.

On M/M sales growth: the Asia-Pacific/All Other 0.4% and Europe 3.4%, but fell slightly in China -0.7%, the Americas -1.1% and Japan -1.3%.

The chart listed below shows related stocks one-year total return of ON, NXPI, INTC, and TSM.

ETFs: SMH, SOXL, SOXX, XSD, USD, SOXS, PSI, FTXL, SSG.

Comments

[dogswithoutfleas]

Um, have some co facts that say sales are down 20 percent YOY for March. Uh oh

[khlim115]

Apparently, this is not good enough. Buying Jan 2024 LEAPS.

[Damon Judd]

AMD is a strong buy under $110. A lot of the tech stocks (not just semis) are getting hammered right now and are screaming buys. I think DOCN looks pretty tasty about now, too.

[brettze]

@EnigmaDude AMD had been regaining market share primarily because Intel still has not slashed prices like they used to in the long past.. I never like Intel price slashings because they always damaged AMD.. now AMD is "alive and well" and this means that i can allow Intel to return to price slashings to a point.. Intel must manage AMD instead of slaughtering AMD.. AMD is an innovative chip company and deserve some but not all of the sunlight !! you hear? Intel is expected to stay dominant. Intel fell behind AMD on good intents and good will. the game is over. and Intel can resume competiveness again. No more pig slaugherings.. of course..
AMD back to 50 or something whicih is still good market value.. AMD can always find major breakthroughs in chip designs that can leave serious dents in Intel's armor in the future.. Intel's real value is in manufacturing.. Intel is going to build more new fabs ONLY IF WE BUY iNTEL STOCK .. I would stop Intel building fabs if investors do not buy Intel stock.; it is pointless in exercise..

[DGrainger]

@brettze Please explain just how buying Intel shares has anything to do with the company deciding to build more fabs? Shares are bought and sold between investors, which does not add one cent to the company's coffers!

[brettze]

@DGrainger investors behave as if they still think that Intel will never be able to move down to 5nm 3, 2nm and so on no matter the fact that Intel is announcing plans to build new fabs.. What are the investors waiting for ? for us to give up and sell Intel ? Intel's plans to build more fabs should be more than enough to convince Wall Street to start recommending buying Intel stock. Why is the "hoard" stilll going on ? Is Wall Street still milking off other stocks because investors are yet to be told to buy Intel? It looks like withchunts to me.

[kyle191]

Record demand for chips but chip makers' stock are getting battered. Can someone explain this to me? I don't want it corrected. I like buying AMD, MU, QCOM at silly low historical prices.

[Chris Lau]

@kyle191 P/E function(sentiment) = lower stock price.
Use the market's folly to your advantage. Buy stocks at historically low prices. Sell at the top of the cycle.

[kyle191]

@Chris Lau You, Shamanski. and me seem to be the only three people in the world that like chippers right now:)

Thanks for the reply. I am always looking to have holes poked in my investment thesis. So far I can't find anyone to dislodge me from buying chip makers at these prices.

I LOVE buying quality stocks when the "market" hates them. I was able to retire at 52 because other people invest with sentiment instead of looking at performance.

[Pierre Rossouw]

@kyle191 No there are far more but you're not catching the in your net or you're not paying attention.

[Shamanski]

Semi conductors are some of the cheapest stocks in the entire market, very low PEs, very high and under appreciated growth, dividends, buybacks.

Chippers have wrongly been destroyed by this ukraine thing, over what Neon?? gimme a break, they are a great buy IMO.

[sunnlotus]

@Shamanski Neon is a noble gas present in the atmosphere in very low concentration. Ukraine has large fractional distillation capabilities to separate this gas from air. This technology has been around for many years. The US need but set up it’s own separation plant and thereby reduce dependency on Ukraine.

[arashed31]

@Shamanski I too am bullish on semis. But there are a lot of factors leading to less growth than predicted. I think that's what hitting the stocks hard given that they are so speculative. See Ambarella's announcement on 14nm availability. The chance of more companies making similar announcements is high.

[John Poorer]

@Shamanski Intel has a low PE. Tell me what other semis are low in that sense? TSM, AMD, NVDA are sky-high in PE. Maybe they grow but question is, what the acceptable multiples are going forward.

Do not fall in love with a stock. They all go down some day. Believe it or not, but they all do.