But those concerns were overshadowed by an otherwise bullish assessment of the sector's outlook. There have been a lot of new fab announcements. We don't have a lot of excess processor capacity, DRAM or foundry capacity. And pricing remains relatively firm, so all in all the semiconductor equipment industry and the semiconductor industry it serves continues to do well. Stocks have recovered nicely from the downturn we saw in the tech market.
Fundamentals remain strong.
People are standing there just in case and then figure out whether they are going to go to the ride or not, because there's no penalty for dropping out later. So when the lead times get really long and the line gets really long, people get on the line anyway. As Applied ramps shipment and reduces backlog levels to three months, Balaraman noted, customers are likely to order equipment based on their immediate needs, slowing bookings momentum in coming quarters. But Balaraman said that scenario is no cause for alarm. As long as macro demand drivers for semiconductors do not slow down, the capital equipment cycle should continue in its growth phase.