“We expect inventory levels to normalise and consumer demand to rise from end-markets such as personal computers, smartphones and autos. Demand from developments in artificial intelligence may also aid recovery.
Fitch Ratings expects the Asia Pacific (APAC) region’s technology sector to stay gloomy, with revenue and operating profitability growth seen to pick up “only slightly” in the coming 2024, even from low levels this year, as consumer demand “improves gradually” and inventory correction nears completion.
According to the research firm, sector fundamentals have remained largely neutral. A key exception is the semiconductor sector, which Fitch expects an improving outlook thanks to the rebound from 2023’s severe downturn.
