Tuesday, October 06, 2009
Anders Bylund :: Townhall.com Columnist
The Chip Chumps Will Shock the Street
by Anders Bylund
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Get ready for a whole lot of surprisesin the semiconductor industry.

As we head into the last earnings seasonof 2009, the Semiconductor Industry Association (SIA) reports surprisingly strong chip sales everywhere you look. Pegged at $19.1 billion, third-quarter sales should come in about 5% above the second quarter's total of $18.2 billion. That's a 16% decline from 2008 levels, which may not sound strong on the surface, but considering that the first six months of this year brought 25% year-over-year sales declines, it's a marked improvement for the industry.

The report doesn't break out individual companies from the data, but it does show strong sales across all geographies and most end-market sectors. The " cash for clunkers" program and other incentive plans boosted sales to the automotive sector, while consumer demand for personal computersand fancy gadgetspicked up over the summer. The recovery looks slower in Europe and faster in Japan and Asia, but it's brisk business across the globe.

Here's how the 16% annual sales drop compares to analyst projections for a few major industry players in upcoming quarters:

Expected Year-Over-Year Sales Drop

Beating or Lagging the Industry

Texas Instruments (NYSE: TXN)

(17.0%)

(1.0%)

Intel (Nasdaq: INTC)

(11.8%)

4.2%

Advanced Micro Devices (NYSE: AMD)

(29.4%)

(13.4%)

NVIDIA (Nasdaq: NVDA)

(7.5%)

8.5%

Qualcomm (Nasdaq: QCOM)

(18.6%) Continued...

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About The Author

Anders Bylund is a Motley Fool contributor.

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