“Early signs of recovery” in semiconductor market beyond AI spotted

The semiconductor sector beyond AI is showing “early signs of recovery,” S&P Market Intelligence concludes based on inventory and revenue data as well as executives’ comments in Q3 earnings calls. “One strong end market in the third quarter was the automotive industry, which saw a notable recovery in the Chinese electric vehicle industry and a smaller ramp in the US. PCs and personal electronics also experienced an increase in demand, several semiconductor companies reported,” S&P writes.

In recent quarters, AI-related investments have been the only bright spot in an otherwise stagnant semiconductor market. “I think today without AI, the market would be very sad if you ask me,” ASML CEO Christophe Fouquet said in October. NXP CEO Kurt Sievers admitted being caught by surprise by a sudden weakening of the industrial and IoT markets. He wasn’t optimistic about the near-term prospects for automotive either.