Semiconductor stocks included in the PHLX Sox index have dropped by about 17% for the year to date, with the semiconductor capital equipment (SCE) makers’ stocks dropping by 25%. That downturn for the equipment makers comes despite growing backlogs, a clearer view of what to expect in the second half of this year, and projected expenditures of around $100 billion in equipment. What about the industry in 2023?
From this starting point, analysts John Pitzer and Anthony Sourial of Credit Suisse looked at whether the decline was based on macro concerns like rising interest rates and geopolitical tensions or “growing concerns” that a peak in the chip industry is upon us. In fact, there is an ongoing debate over whether sales will fall at all in 2023. In the analysts’ view, SCE stocks are already “embedding” wafer fab equipment sales in a range of $75 billion to $80 billion, a dip of 20% to 25% below 2022 projected sales.
The Credit Suisse team takes a different view…
The post Credit Suisse Upbeat on 7 Semiconductor Equipment, Chip Stocks originally appeared at 24/7 Wall St.