Chip stocks are testing trough valuations but if we have a seasonal pickup the downside is somewhat limited. But if you don't get that seasonal pickup, then chip prices drop and inventory gets dumped in the channel. That's when havoc ensues.
More Quotes from Patrick Ho:
You are entering a seasonally softer period, so you don't want to have inventory at a worse level in December than where you were exiting the September quarter,Patrick Ho
Obviously whenever inventory builds, in the back of your mind, there's always a little bit of a concern.
Patrick Ho
When sequential growth starts slowing down, that's when savvy investors will have to think about getting out of the chip sector,
Patrick Ho
A lot of the negative news was baked in to the stock already.
Patrick Ho
People are confusing some of the normal seasonal slowdown we get in June with being some type of secular change in the environment,
Patrick Ho
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