The Philadelphia Semiconductor Stock Index (SOX) fell 11th again. It has extended its losses in the last few trading days to a minimum of two years. Weak demand and a sharp decline in global personal computer (PC) shipments have exacerbated concerns.
The semiconductor industry has had a tough time this year. More recently, Advanced Micro Devices (US), the second largest manufacturer of computer processors,ＡＭＤ) gave a gloomy outlook for the third quarter.The Biden administration of the United States hasChinaannounced new measures to limit access The technology sector, which makes up the S&P 500 index, has underperformed the rest of the index since the beginning of the year.
US research firm Gartner announced that global PC shipments for the July-September quarter fell 19.5% year-on-year. It marked the biggest decline since the company began studying the market in the mid-1990s. Although supply chain problems have subsided, high inventory levels are now a major problem due to weak demand from both consumers and businesses.
Gartner, in particular, pointed out that the back-to-school sale turned out to be a disappointment despite a lot of publicity and price drops. Many consumers have bought new PCs in the past couple of years.
PC shipments to the United States fell 17%, the fifth consecutive quarter of decline. The closure of operations in Russia and blockade measures in China due to the spread of the novel coronavirus also hurt demand.
Original title:The historic slump in PC shipments heightens concern over tech stocks(extract)
