Gartner (IT) Cites Higher PC Sales For Buoyant Forecast Of Chip Sales
November 19, 2009 9:42 AM
Gartner, Inc. (NYSE: IT) has increased the projections for chip sales on the back of much higher PC sales. This has also been greatly boosted by the government stimulus program that has increased PC sales.
Companies like Advanced Micro Devices, Inc. (NYSE: AMD), Intel Corporation (NASDAQ: INTC), Applied Materials, Inc. (NASDAQ: AMAT), which constitute the US semiconductor market will see a $226 billion revenue this year as compared to $255 billion last year, a fall of 11.4 %. However, this is better than the earlier projections of $212 billion that would have been a fall of 17.1% against last year.
It is also being seen that semiconductor companies like Semiconductor HOLDRs (ETF) (NYSE: SMH) are seeing greater growth even as PC sales are seeing double digit growth figures as compared to current low single digit outlook. Even though some of the signs are pointing towards growth it is also true that it seems as if PC sales are tapering down and early 2010 could witness lower sales.
