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Despite the immediate challenges, many industry experts believe the slowdown in semiconductor sales should turnaround in the second half of 2012, as hard disk drive production picks up.
“My sense is that most of the inventory issues and hard disk drive issues as you enter the second quarter will be over,” said Hans Mosesmann, senior semiconductor analyst at Raymond James.
“We’re either close to the bottom or right at the bottom…I’m willing to hold some of these semiconductor stocks for a year. There’s a possibility of a nice snapback after we go through this inventory correction,” he said.
Earlier this week, Nvidia cut its quarterly sales outlookover hard-disk drive shortages, prompting JMP Securities to downgrade the graphics chipmaker’s rating to “underperform.” In addition, Sandisk late Wednesday warned that its revenue in the first half of 2012 would be hurt by weaker demandfor some mobile device manufacturers.
Not even industry giant Intel was spared from the storm as the Dow component said it expects shortage of hard disk drives to impact business in the first quarter . Intel was downgraded to “hold” from “buy” at Kaufman Brothers and to “neutral” from “buy” at Sterne Agee. Meanwhile, Intel shares were trading at a four-year high on Thursday.
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