SIA: Semiconductor October Sales Up 5%, Forecast Boosted

semiconductor stocks

The Semiconductor Industry Association just released a bullish report on industry-wide sales, and offered a better outlook for 2017 and 2018.

The SIA said that October worldwide sales of semiconductors reached $30.5 billion for the month of October 2016, which was up 3.4% from September’s total of $29.5 billion, and a 5.1% increase year-over-year from last October’s $29.0 billion total.

Additionally, SIA endorsed the WSTS Autumn 2016 global semiconductor sales forecast, which pegs 2016 worldwide semiconductor sales of $335.0 billion for the full year 2016, which is 0.1% decline from 2015. Looking ahead, the WSTS industry forecast sees “slight market growth” for 2017 and 2018.

The industry group commented via press release:

“The global semiconductor market has rebounded in recent months, with October marking the largest year-to-year sales increase since March 2015,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Sales increased compared to last month across all regional markets and nearly every major semiconductor product category. Meanwhile, the latest industry forecast has been revised upward and now calls for flat annual sales in 2016 and small increases in 2017 and 2018. All told, the industry is well-positioned for a strong close to 2016.

The VanEck Vectors Semiconductor ETF (NYSE:SMH) closed at $69.46 per share on Monday, up $0.69 (+1.00%). Year-to-date, SMH has surged 30.37%, more than tripling the return of the benchmark S&P 500 during the same period.