The Semiconductor Industry Association (SIA) revealed that August sales in the industry were below seasonal trends. Bernstein senior analyst Stacy Rasgon joins Catalysts to discuss the print and what it signals about the health of the overall sector.

Rasgon notes that monthly data "tends to be a little noisy." Instead, investors should pay close attention to the three-month outlook, which is more supportive of the chip industry's growth.

"More broadly in the industry, you have to remember, like currently it's been a very asynchronous cycle. Some end markets have been very bad, some of them have hit bottom, some of them are past bottoms, some of them are not," he says. "I'd say things like PCs and smartphones, they're not great this year, but they'll probably grow a little bit versus versus last year. AI is clearly off the charts strong."

He explains that because of this asynchronous cycle, it's hard to look at the entire sector as a whole and make a conclusion: "You do have to pick and choose which parts of the market you're looking at, which parts of the market you want to be playing in."

Broadcom (AVGO) is set to report fiscal third quarter earnings on Thursday, September 5.

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This post was written by Melanie Riehl