Semiconductor selling is a 'reset', says Evercore ISI's Daryanani - CNBC

Evercore ISI analyst Daryanani described current semiconductor sales as a 'reset' during a CNBC interview, indicating a significant turning point in the industry. This perspective reflects a reassessm... Read original →

The current semiconductor 'reset' reflects deeper structural shifts beyond cyclical demand swings. While AI-driven HPC demand remains robust, bloated inventories are suppressing TSMC’s sub-7nm fab utilization, delaying EUV tool deployments and dampening the entire upstream equipment ecosystem. Escalating U.S. export controls and concentration risk in Taiwan, China have forced global customers to incur higher compliance costs and invest in redundant supply chains. NVIDIA may accelerate custom ASIC development to reduce reliance on general-purpose GPUs, while Intel and Samsung could leverage this window to promote localized foundry partnerships. Over the next 12–24 months, expect a shakeout: low-margin mature-node capacity will be rationalized, while advanced packaging and chiplet architectures emerge as critical differentiators. Recovery hinges not on inventory restocking, but on reconciling AI deployment economics with geopolitical supply chain imperatives.