Sam Boughedda

Morgan Stanley Analyst Joseph Moore stated Monday to investors that new data shows significant increases in semiconductor inventory across the supply chain.

Companies from all industries continue to cite the supply chain problem as their greatest challenge. The analyst believes this has resulted in large inventories being moved through the pipeline.

Moore stated that while 1Q represents a seasonal increase quarter for inventory, Moore said this: “While we see growth beyond seasonality with every area we track showing an increased number of days inventory,”

Analysts reported that stock levels were at their highest in quarters last year at distributors, customers and semi companies.

Moore states that while semi-company and customer inventories have not fallen to historical levels Moore claims that distributor inventory is quite low. It has decreased significantly since 4Q20’s local minimum, which Moore stated was relevantly higher than this quarter.

This means that, while inventory overall has increased for some time now, it is only the first quarter in which every part of the supply chain is at historical highs.”