Chip gear sector is sexy again, as sales recover

By | June 4, 2014

Scalper1 News

After two years of decline, spending on semiconductor manufacturing equipment is set to roar back this year. Global industry association SEMI predicts that fab equipment spending will rise 14% to $35.7 billion in 2014 and 11% to $39.5 billion in 2015. Spending next year might even surpass the 2011 record of $39.8 billion, SEMI said in a news release late Tuesday. The increase in chip gear spending comes after declines of 18% in 2012 and 12% in 2013, SEMI reported. IBD’s Electronics-Semiconductor Equipment group has been on the rise the last four weeks. The group ranks No. 82 out of 197 industry groups. A week ago, it was ranked No. 110 and four weeks ago it was No. 122. Applied Materials (AMAT), the No. 1 producer of chip-making gear, on May 15 posted quarterly results that met Wall Street estimates and gave current-quarter guidance that cheered investors. Its stock hit… Scalper1 News

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