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KEY POINTS Investors in the semiconductor space could be attempting to "time the bottom," said Randy Abrams of Credit Suisse.

The downturn cycle in the semiconductor sector "might be much shorter than expected," according to Kiwoom Securities' Daniel Yoo.

Both analysts also explained to CNBC how the sector might be affected by the upcoming trade negotiations between the U.S. and China.

The outlook for the semiconductor sector may be turning positive. Analysts are expecting chip demand to hit bottom before picking up later this year. A number of chip companies said the the first quarter of 2019 will likely see a "cycle bottom" despite offering a poor outlook for the period, Randy Abrams, managing director and head of Taiwan equity research at Credit Suisse, told CNBC on email. Investors would typically attempt to "time the bottom" and "worry about the the rate of recovery later," he said. The downturn cycle in the semiconductor sector "might be much shorter than expected," according to Daniel Yoo, head of global strategy and research at Kiwoom Securities.

Most investors are looking for a turnaround in demand for dynamic random-access memory chip (DRAM) at a time when chipmakers are cutting back on their capital expenditure, said Yoo. This would result in a "sharp adjustment" of the oversupply situation in the semiconductor sector in the second half of 2019, he added. "In fact, parts producers are talking about demand pickup, which could be much stronger than (the) market expects," he said.

Impact of US-China trade war