The thesis I’m going to explain here is very simple. Basically, the coronavirus event should induce a negative semiconductor cycle. This is so for a very basic reason: typically, negative semiconductor cycles are induced by excess semiconductor inventory.
Now let’s see what the coronavirus event has done, for which we have definite proof:
- The coronavirus event led to a collapse of Chinese demand for electronic devices, for instance smartphones. Also importantly, the coronavirus event led to a collapse of the fabrication of electronic devices. We know both of these things because of Apple’s (AAPL