Citi Research has issued a warning that widespread delivery delays and cancellations suggest that the analog IC party is over.

MarketWatch, Investing.com reported that Citi analyst Christopher Danley published a research report on July 11, indicating that the delayed and cancelled lead times that hit analog IC and DSP major Analog Devices, Inc. (ADI), a major analog IC and digital signal processor (DSP) manufacturers, delivery delays and cancellation problems now also affect other analog IC manufacturers, lead time gradually reduced, "we believe that the demand turned weak (especially in Europe) and high inventory is the main cause of this boom cooling.

Danley predicts that Texas Instruments Inc. and NXP Semiconductors N.V. will report poor earnings, "This is only the beginning of the cycle of the downturn, and every company and every end market will feel the impact.

Danley also predicts that the Philadelphia Semiconductor Index will reach a new low due to increased downward momentum and lower corporate earnings estimates on Wall Street. He believes that the chip stocks will bottom out in the first half of 2023 after each company aggressively revises its profit outlook downward, investors pledge to surrender, and memory, logic IC, and foundry industry players cut capital expenditures.

Danley as early as more than a month ago, a lone opinion, warning automotive and industrial customers (the most severely affected by the chip shortage industry) signs of correction.

TSMC is scheduled to report earnings this Thursday (Oct. 13), while Dutch semiconductor equipment giant ASML Holding NV will also report then, and semiconductor etching machine maker Lam Research Corp. will announce a week later on Oct. 19.

The earnings season for U.S. chip stocks will be kicked off by Texas Instruments on Oct. 25.

So far, some analog IC stocks have performed much better than their semiconductor counterparts. Year-to-date, ON Semiconductor (ON Semiconductor), DEI only fell 12.44%, 18.58%, respectively, performing much better than the 43.78% decline in fee and a half.

source： EETOP半导体社区