El Sector Tecnológico | Weekly Extract October 10

The technology sector was strongly affected during the week, although this is a highly volatile industry that manages to create the famous difference in returns due to volatility between indexes such as the NASDAQ and other traditional indexes such as the S&P 500, this time it is the cause of a sharp decline in the weighted valuations of these indexes.

Technology is everywhere today, from the obvious home and office computers, cell phones and in-car displays, to specialized medical equipment and large cryptocurrency miners around the world that use hundreds or even thousands of serial graphics cards to perform repetitive tasks.

That is why when we see a sharp drop in the sector, especially coming directly from sales, it is worrying, we could infer that this reduction is obviously due to problems in the supply chains as we mentioned in our article "The supply chains in the sector". Semiconductors : from sand to Supercomputers The lack of demand due to inflation, one could speculate that the lower demand in other sectors for services or products such as automobiles or telephones directly reduces the demand for semiconductors and this impacts companies such as AMD.

And just this week it was AMD who revealed that Q3 sales were around $5.6 billion, up 29% year over year, below the average projection of $6.71 billion.

Preliminary results show Client sector revenues lower than anticipated, the firm said, as a result of fewer processor shipments caused by a weaker-than-expected PC market and extensive inventory correction measures taken throughout the PC supply chain.