Semiconductors are a critical component of everything that is computerized in modern human life. ECRI’s Achuthan explains that the 20% ‘collapse’ in semi demand to a 10-year low in growth, belies the 21% rebound in the semiconductor stock index year-to-date.
ECRI’s Lakshman Achuthan builds his bearish case on a chart of falling semiconductor shipment demand. Here is a direct video link.
Semiconductor rally shows signs of collapsing, market forecaster Lakshman Achuthan warns from CNBC.
The collpse in semi-demand over the last year is also a warning sign for US GDP. This chart since 2000 shows the three month moving average of semiconductor sales (dark blue) leading US GDP growth (light blue) by about six months.
;
