Reporting on Apple IncSemiconductor analysts said concerns about the peak of the sector's cycle could ease after Apple Inc's production target for iPhone 13 may be lowered because of chip shortages, adding that Apple Inc faces difficulties in procuring chips, highlighting industry-wide supply difficulties.
Credit Suisse
"the fact that Apple Inc cannot buy enough semiconductors is telling," highlighting the extent of the supply shortage. "it may be reassuring that while the entire supply chain is clearly restocking, but there is no risk of a sudden end to the semiconductor cycle."
Truist Securities
The news of more shortages "comes as no surprise and confirms our cyclical view of 'peak extension'".
Apple Inc's supply shortage is somewhat surprising because it is the largest customer in the supply chain and "in the consumer end market, the product cycle is very short, and failure to keep up with shipments will hurt demand."
Deutsche Bank
The semiconductor market is still in purgatory, at which expectations may continue to rise, but fears of a peak in behaviour will dampen valuations.
Cowen
Although many categories are in short supply, these are difficult times for semiconductor stocks.
Supply problems could limit the upside of share prices in the current quarter.