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RHB is bullish on the semiconductor industry

Samantha Chiew
Samantha Chiew • 3 min read
RHB is bullish on the semiconductor industry
The semiconductor industry is booming and these stocks are under the spotlight
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SINGAPORE (July 3): RHB Group Research is keeping its “overweight” rating on the technology sector as the semiconductor industry is expected to see a recovery. Sustained capital equipment spending and the global memory rebound can be expected for 2H20, too.

In a Friday report, lead analyst Jarick Seet says, “Inventories are stabilising, and dynamic random-access memory (DRAM) pricing is likely to rise. SEMI also expects equipment sales to grow 5.5% y-o-y to US$60.8 billion in 2020, on advance logic and foundry spending and new projects in China.”

Meanwhile, chip sales have bottomed out, and should improve. But Seet does not expect a V-shaped recovery, as moderated growth is more plausible.

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