A global shortage of semiconductors has pushed chip stocks to record highs, and analysts expect that chips will continue to be in short supply at least through the end of the year as COVID-19 pushes the world further into the digital realm and the industry struggles to keep up with demand.
“Unless we have a major economic meltdown, which is obviously possible, one of the things that’s happening right now is that almost anything you buy is going to have a chip in it,” Lopez said. “You can’t buy a dumb product.” Analysts believe there could be more gains ahead, though, as demand sends prices higher and boosts companies throughout the semiconductor space. Even as stock fundamentals appear stretched thin, Sur said “we believe semi companies are shipping 10% to 30% BELOW current demand levels and it will take at least 3-4 quarters for supply to catch up with demand and then another 1-2 quarters for inventories at customers/distribution channels to be replenished back to normal levels.
Those companies are doing what they can to avoid a repeat of the pain that came at the end of the 2018 boom and resulting shortage. Nvidia, for example, said it hoped to ease shortages of gaming cards by launching a chip designed for cryptocurrency mining as cryptocurrencies like bitcoin BTCUSD, -1.69% and ethereum ETHUSD, -1.26% continue soaring to record highs.
You can buy a gun with no chip in it
i like processor
I'm so surprised on how I make so much profits through crypo currency after seeing many people complain of being scammed, this is so amezing am still shocked Evely_morris
My guitar does not agree