(Bloomberg) — Semiconductor shares posted lower-than-normal gains in early trading on Tuesday. It has dropped to the lowest since October 2020 due to the dramatic drop in global PC shipments. Raising concerns about weak demand, the tech mega-caps were among the top S&P 500 that fell by value.
The sector has been affected this year. The latest is a result of AMD’s disappointing forecasts and with a rethinking of US restrictions. In China’s access to American technology, the S&P 500 tech sector lags behind the broadest year-over-year index by most of its generation.
New numbers from Gartner are coming in the dark: Global PC shipments fell 19.5% year-over-year in Q3, a steep decline since the company began tracking the PC market during the period. By the mid-1990s, the supply chain had eased. But high inventory is now a major problem due to weak demand from both consumers and businesses.
Gartner noted particularly disappointing mid-term sales. Although there are many promotions and price reductions. Because a lot of people bought a new PC in the last two years. (Another wave of discounts has not yet come with holiday promotions. which may provide comfort to the Fed because it focuses on fighting higher prices)
in the United States PC shipments fell for the fifth quarter, down 17%, led by laptops. Still, there are encouraging signs: desktops are growing slightly, driven by small and medium-sized businesses and governments. interesting is Earlier data showed US small business optimism. It remained at a low for the third month in September. by companies Have a better attitude about sales It’s also worth noting that AMD’s business beyond PCs, including its data center growth, isn’t too bad.
in other regions Shutdown in Russia and Lockdown in China (Surprisingly) Affects PC Demand And the overall economic outlook is not very good. With the latest warning from the IMF and JPMorgan’s Jamie Dimon. which will focus on technology and other stocks
- Note: Felice Maranz writes to Bloomberg’s Markets Live blog. The observations she makes are her own and are not intended to be investment advice. For more market reviews Please see the MLIV blog.
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