There are always points of tension for share prices. With entire sectors now poised midway between past highs and lows, the optimists seem finely balanced against the pessimists. In semiconductors, for instance, the tug-of-war is focused between end-demand gloom mongers, and supply-side champions. Intel, which reports third-quarter numbers on Tuesday may not lend definitive weight to either side, but there is cause to think that the optimists may have the edge.

That the semiconductor industry is rebounding is not in doubt. Since the end of the first quarter, chip sales have risen by just over a third. Based on its pre-announcement, Intel is expected to show just over 9 per cent growth in revenues versus the second quarter. Manufacturers throughout the technology supply chain were spooked by the collapse in end demand , but have since started to rebuild component inventories anticipating recovery.