The recovery of the chip market also depends on PC buying trends, which may not improve in the coming quarter.
"Hopefully things will improve next year," McCarron said.
The slumping PC market also hurt Intel's and AMD's earnings, with overall and PC chip revenue dropping for both companies in the most recent fiscal quarter. The chip makers are facing an increasing threat from the likes of Apple, Samsung, Qualcomm and Nvidia, whose ARM-based chips go into smartphones and tablets. Mercury Research's study did not include ARM in the numbers as the processors are not considered PC chips.