Despite recent negative news in the semiconductor industry, the economy and stocks have been performing exceptionally well. In late October, two major chip suppliers reported a decline in auto demand, with On Semiconductor attributing it to higher interest rates for car loans. Texas Instruments also provided disappointing guidance, citing softness in the industrial sector.
While some pessimists view these warnings as a sign of a weaker economy, the S&P 500 index is only 5% away from reaching an all-time high. This could make stock-picking more challenging in the coming months.
However, even if the global economy falters next year, one area of technology that may remain relatively unaffected is the chips and products used in the expansion of data centers to meet the growing demand for artificial intelligence.
2023-12-01 00:01:00
Source from www.barrons.com
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