The End of The World Is Not Nigh
Barron’s has a very apposite take on the chip industry – if it wasn’t for the fact that the end of the world is nigh, chip CEOs would be optimistic.
CEOs from Morris Chang to Rick Clemmer to Rich Templeton instance the general state of the world economy and the particular state of Euro-debt as reasons not to feel confident.
Barron’s wrote: “There are only so many times one can hear a chip-company executive utter the phrase ‘in light of macroeconomic uncertainty’ before concluding there is nothing wrong with the semiconductor industry save for the fact that everyone is generally anxious that the world is coming to an end.”
Barron’s view is that: “Outside the doom and gloom, the stocks are valued as if they’ll never see growth again, which is probably not true.”
So the good news is that chip share prices have bottomed, the shares are generally under-priced and CEOs can smile again at the face they see in the shaving mirror.