The Case For A Strong U.S. Chip Recovery
Ed Lin, 12.12.05, 12:05 PM ET
Caris & Co. analyst Rick Whittington said that according to a study from Pathfinder Reseach, showed that worldwide chip revenue rose nearly 11% in the third quarter from the second quarter.
"This reflects strong new product cycles in computing, wireless, consumer and industrial/aerospace," Whittington said in a research report. "Communications markets continue to lag, impacting traditional segment suppliers Altera (nasdaq: ALTR - news - people ) and Xilinx (nasdaq: XLNX - news - people ), both of which report strength elsewhere, including autos but also industrial and defense."
U.S. companies grew just under 6% sequentially but up a whopping 12% year-over-year, with an 18% net profit margin, the analyst said. Advanced Micro Devices (nyse: AMD - news - people ) led with a 23% gain year-over-year, Micron Technology (nyse: MU - news - people ) was second with a 19% gain, and Intel (nasdaq: INTC - news - people ) was "highly respectable" with an 18% gain.
"Intel's 20% net margin was swamped by Qualcomm (nasdaq: QCOM - news - people )'s 34%," Whittington said. "Globally diversified investors seeking the world's leading companies need look no further. IP-driven product portfolios increasingly provide the impetus for a strong U.S. chip recovery." |
