Chip stocks lag market as semiconductor sales decline for 11th straight month

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Chip stocks lag market as semiconductor sales decline for 11th straight month
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Chip stocks underperformed the broader market Thursday after the semiconductor industry logged its eleventh month in a row of steep losses.

Chip stocks underperformed the broader market Thursday after the semiconductor industry logged its 11th month in a row of steep losses from the year-ago period.

Global chip sales in May fell 21.1% to $40.7 billion, from April 2022’s $51.7 billion, according to the trade group Semiconductor Industry Association late Thursday. SIA expects chip sales to fall 10.3% in 2023, with a rebound of 11.9% growth in 2024, using World Semiconductor Trade Statistics forecast data.

Advanced Micro Devices Inc. AMD shares have rallied 50.6% on the year; Marvell Technology Inc. MRVL shares have gained 58.8%; Lam Research Corp. LRCX is up 47.8% on the year; ON Semiconductor Corp. ON has gained 48.5%; and Broadcom Inc. AVGO has grown 51.7%.

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