June Semiconductor Growth In-Line With Morgan Stanley Estimates
On Monday morning, Morgan Stanley released its semiconductor report without raising any eyebrows.
June semiconductor sales were up 12.1 percent month over month and were up by 12.7 percent year-over-year. Sales were in-line with Morgan Stanley's expectations.
However, here are some key takeaways from the report:
“Our CY2014 forecast remains basically unchanged at 9% growth; we have been at this level basically all year. In 2H14, we expect continued growth driven by broader industrial markets, TD LTE and Apple smartphone volumes, and stable PCs.”
Morgan Stanley analysts reiterated the firm's three percent growth rate projection for 2015, there could be some upside in that figure, as the supply chain is very lean, and can adjust for higher demand.
Obviously projecting higher demand can be difficult, and until there's more conclusive information from the supply chain, it's unlikely that Morgan Stanley will start to adjust its 2015 forecast.
Morgan Stanley also mentions in its report improving pricing for memory, and higher demand for micro controller units:
“NAND GBs were down 7% m/m but up 32% y/y; ASPs were up 19% m/m but down 24% y/y. For 3Q, we expect NAND bits to be up 12% q/q (39% y/y) and ASPs flat q/q, with continued relatively positive trends in memory through year end. MCU sales were up 25.7% m/m vs. typical seasonality of up 17.1%. On the other hand, Analog was below seasonality at up 12.6% m/m vs. up 15.3%. Pricing was a touch below seasonal for both Analog and MCUs.”
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