Semiconductor sales grew by double-digits for eighth straight month in July - BofA

Investing.com -- Global semiconductor sales in July finished up by 18% compared to the same period last year, marking the eighth straight month of double-digit annualized growth for the industry, according to research from Bank of America Securities.

Semiconductor manufacturers have become a crucial focal point for investors, fueled in part by a recent boom in enthusiasm around artificial intelligence and the ongoing need for specialized chips in electric vehicles.

However, in a note to clients on Tuesday, the BofA analysts flagged that the chip industry had decreased by 6% on a year-to-date basis, due partially to "below seasonal trends" in memory processors.

They argued that the sector should see a recovery in the second half of 2024, although the analysts conceded that "uncertainty" around the timelines for a possible rebound in "auto/industrial and consumer demand."

"Overall, we believe long-term secular growth trends around AI proliferation, increasing semi complexity, auto/industrial electrification remain intact," the analysts said.

Source: Investing.com