In terms of end usage, except smartphones, the top five end uses for semiconductors are personal computers (PCs) (12%), servers (11%), diverse consumer products (12%), automotive (10%), and industrial electronics (9%).…
Underweight The S&P semi equipment index has made the headlines reaching fresh cycle-highs. While bulls would buy this breakout, we are sticking our heads out and recommend selling the strength and warn that the S&P…
The contracting ISM manufacturing survey signals that relative share price momentum running at a 60%/annum clip is unwarranted and bound to return to earth. The same holds true for relative forward profit and revenue growth…
Tech stocks have been on a tear with the sector besting the SPX by over 40% since 2015. Such a breakneck pace is unsustainable without support from earnings. Despite the sector’s share price outperformance, expected tech…
Highlights Portfolio Strategy Lack of profit growth, deficient industry demand, perky valuations and extremely overbought conditions all suggest that the time is ripe for an underweight stance in the S&P semi equipment index. The…
Our technology model has predicted well periods of tech sector outperformance over the past several years. The model suggests that, in addition to being negatively related to prior overbought conditions, periods of technology…
Overweight The S&P software index’s – dominated by MSFT – frenetic year-to-date run has lost steam lately, and pure play cloud stocks are sending an unambiguous negative signal. Worryingly, cloud stocks…