SAN FRANCISCO — The semiconductor industry's rapid growth of the past year is expected to taper off and industry analysts are predicting lower profits for at least part of next year.
Many computer analysts recently trimmed earnings predictions for 1988 for many semiconductor manufacturers and some are recommending that investors unload computer chip stocks during periodic rallies, such as Wednesday's advance.
"The basic trend in those stock prices will be downward," said analyst Eli Sayegh of S. G. Warburg, Rowe & Pittman.
"The first part of next year will be when we feel the worse part of the stock market crash," said analyst Michael Stark of the brokerage house Robertson, Colman and Stephens. "But it will not be a blood bath," he added.