In its latest report, the World Semiconductor Trade Statistics (WSTS) predicted the global semiconductor market would decrease by 9.4% in 2023. The revised forecast, less severe than the predicted drop in May 2023, was based on higher-than-expected semiconductor sales in the second and third quarters.
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Indeed, WSTS expects the global semiconductor market size to shrink to $520 billion this year, owing to a drop in demand across all Integrated Circuit categories, including Analog, Micro, Logic, and Memory. These categories could see as much as an 8.9% decline. Conversely, the report forecasts a 5.8% expansion for Discrete Semiconductors, driven by demand for Power Semiconductors.
The European market is expected to rise 5.9%, whereas the remaining regions are predicted to experience a decline, with the Americas falling 6.1%, the Asia Pacific region falling 14.4%, and Japan falling 2%.
Nevertheless, WSTS sees a strong rebound for the market in 2024, with robust growth of 13.1%, mainly propelled by increasing demand in the memory sector. Other important categories, including Discrete, Sensors, Analog, Logic, and Micro, will likely rise in the single digits.
Regionally, all markets are also expected to increase in 2024, with the Americas and Asia Pacific predicted to grow at double-digit rates year-over-year.
Semiconductor stocks saw a mixed performance in Friday’s trading session, with sector giant Intel (NASDAQ:INTC) falling over 2%.
What is the Best Semiconductor Stock?
Turning to Wall Street, AMAT stock remains the leader in upside potential here. This Strong Buy-rated stock offers 8.89% against its average price target of $164.89. Meanwhile, with an average price target of $37.39, INTC stock is the laggard, as this Hold-rated stock offers investors -14.56% downside potential.
