Semiconductor Recovery Boosted by Microchip Sales Outlook

14 days ago

Khloe Mele

"Got some traders watching Europe tech firms for non-micro gains. Yeah, so Microchip over in in the US has said that it expects higher sales than previously thought. Um, so that's taken by the market as a sign of recovery for industrial and automotive end markets. So this is a good day then for semiconductor companies in Europe that are exposed in particular to those end markets. And there's been a lot of weakness recently in those end markets and really a lot of uncertainty about when that would lift. Um so the fact that microchip has signaled a rebound there is really reassuring for Infinian and ST Micro especially given that those two actually had said previously that the quarter that ended in December would be below seasonal trend."

The segment discusses a positive shift in the semiconductor industry, citing Microchip's forecast for higher sales as an indicator of recovery in industrial and automotive sectors. This commentary suggests that the current rebound could help narrow the performance gap between traditional semiconductor names and those more exposed to the AI sector.

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