Semiconductor sales rose by double digits for the eighth straight month in July

Investing.com — Global semiconductor sales in July rose 18% compared to the same period last year, marking the industry’s eighth straight month of double-digit annual growth, according to Bank of America Securities research.

Semiconductor makers have become a crucial focal point for investors, fueled in part by a recent boom in excitement around artificial intelligence and the continued need for specialized chips in electric vehicles.

However, in a note to clients on Tuesday, BofA analysts signaled that the chip industry was down 6% at the start of the year, due in part to “under-seasonal trends” in memory processors.

They said the sector should see a recovery in the second half of 2024, although analysts acknowledged “uncertainty” around the timing of a possible recovery in “auto/industrial and consumer demand”.

“Overall, we believe the long-term secular growth trends around AI proliferation, semi-complexity growth, automotive/industrial electrification remain intact,” the analysts said.