Chip Correction Nearing a Bottom By Thomas Kurlak About this article: I have to hand it to the analysts who ferreted out the inventory mini-correction now apparent in the semiconductor sector. But I must also say that they may be getting carried away with a good piece of micro analysis while ignoring the bigger picture. The motivation for analysts being quick on the trigger is the vivid memory of the inventory debacle in 2000 and the subsequent stock price collapse. But despite fears that another bust is in the offing, this is not 2000 all over again. First of all, the economy is too strong for semiconductors to have a real problem with end demand. The positive correlation with the GDP has been too strong for too long to worry that a disconnect is happening. Second, we are entering the seasonally stronger second half for tech products for both consumers and businesses. The inventory numbers... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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