Browse past tech stock questions and answers in the Ask Matt archive . Such volatile ups and downs are a sign of a confused market. And yes, there's plenty to be uncertain about with the chip industry. Investors are wrangling with bears that say the boom is getting old.
Bears insist that high prices and shortages are a signal to chipmakers to build new capacity.
But bulls say that we've got at least another year in this chip boom and that shortages will only sweeten the profits for most chipmakers. The last chip cycle boom ended in 1998 or so, and the cycles tend to go around three years, depending on whom you ask. Of course, Analog Devices has posted explosive growth amid the chip boom. But remember that things can get rocky, too.