Chip shipments expected to grow in 2021

Hanno Labuschagne

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Chip shipments expected to grow in 2021

Semiconductor companies are facing improved prospects headed into 2021, but these tailwinds could be tempered by stock prices that are near all-time highs, analysts said on Monday.

The Philadelphia Semiconductor index rose 1.2% on Monday, bringing its year-to-date advance to nearly 50%. The industry benchmark has easily outperformed the 13% gain of the S&P 500, as well as the 36% rise of the S&P 500 information technology index.

This rally “sets high expectations for sales and EPS momentum through 2021,” wrote Bloomberg Intelligence. However, “barring severe Covid-19 impediments, chipmakers can perform to this expectation or even above it.”

[Bloomberg]
 
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