This isn’t a great time for semiconductor stocks, what with the PC market being what it is and the bulk of semiconductor devices continuing to go into PCs.

Yes, it’s true that the Semiconductor Industry serves as a driver, enabler and indicator of technological progress. Developments in the industry do determine the way we work, transport ourselves, communicate, entertain ourselves and respond to our environment.

But the PC market slump can’t be ignored. So in searching for bright spots at the moment it would perhaps be better to look for other applications, such as in the cars we drive, the phones we communicate with, the electronic gadgets on which we watch movies, listen to music and play games on, the devices we use to monitor our health and connect our homes and the planes and weapons used to transport or protect us, all of which use semiconductors. Also don’t forget the increased automation on the factory and shop floors, which are facilitated by these tiny integrated circuits called semiconductors.

Other opportunities could be in technologies that help solve environmental issues or promote thrift, helping to improve corporate balance sheets in an environment remaining somewhat impacted by China market concerns, oil prices, currency issues and the rate hike. These opportunities would lie in chips reducing power consumption, reducing heat dissipation, capturing solar energy, creating more efficient lighting solutions and so forth.

So first, the bad news…

The PC market is essentially two markets, one is the enterprise side and the other, consumer. Believe it or not, neither side is doing too well right now, and won’t do much better for another one-to-two quarters.

On the enterprise side, corporate spending decisions take time and are predicated on a perception of added value, whether it’s related to security or efficiency. The cloud is adding a new dimension to this, as companies partially or wholly adopt this new technology. That’s why Microsoft’s Windows 10 is expected to have a big, if somewhat-delayed impact here, as it takes one final step to retain legacy workloads. This update will perhaps be the last time that Windows will be a key driver, as the company doesn’t plan on a totally new OS again, but will henceforth focus on periodic updates. Increased BYOD device sales and Intel’s Skylake family will be other drivers.

On the consumer side, Microsoft’s offer of a free upgrade to Windows 10 is limiting PC sales in a market where consumers are hesitant to spend on upgrades anyway. That’s because consumers already have many more devices than they need and because Internet and many other conveniences of computers are now easily available on smartphones and tablets. 

Recently-released reports from IDC and Gartner indicate a secular decline. Both say that the PC market, which saw significant declines in the Dec 2015 quarter declined even more in the Mar 2016 quarter. Since their definition of the market varies slightly, their estimated decline differs somewhat: in IDC’s estimation, it’s an 11.1% decline while according to Gartner, it’s 9.6%. Whatever the case, both agree that the top vendors are Lenovo, HP and Dell. Gartner estimates that both Apple (AAPL) and Asus grew with Apple in the fourth place and Asus fifth while IDC says they both saw sales decline with Asus in fourth place and Apple fifth.

Chipmakers try to get into as many devices as possible, which is easier said than done. Apple for one makes its own PCs, software and also a lot of its own chips, relying largely on high-end chips from Intel and memory chips from Samsung for the bulk of its other semiconductor requirements. Microsoft (MSFT) makes software and limited quantities of hardware, relying largely on third-party device makers for chips, PCs and mobile devices. It’s also a major player in the cloud, which makes it an important ally for device makers.