Insight: Communications Semiconductor Market Review Q1 2024 — AI data center is the one bright spot in a down cycle
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This short-form report presents a top-down snapshot of the communications semiconductor market in the first quarter of 2024. A combination of factors in downstream markets, particularly excess inventories resulting from defensive buying during the pandemic, led to a cascade of reduced purchasing from upstream suppliers. However, exuberance over generative AI led to increased spending for data center networking equipment. We expect this down cycle to bottom out at the end of 2024.
