Chip shipments expected to grow in 2021

Hanno Labuschagne

Staff member
Sep 2, 2019
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.”