FROM SMARTMONEY
Hopes that chip-equipment companies would turn in strong quarterly
earnings pushed the sector higher Thursday. Lehman Brothers analyst
Edward White thinks good things are in store when bellwether equipment
makers Novellus Systems, Teradyne and KLA-Tencor report quarterly
earnings on July 19, 20 and 28, respectively. "We expect the numbers,
comments, conference calls and meetings to be very favorable," White
said in a note.
Strong quarterly results from the big names in the group may fuel
another rally in the chip-equipment sector, White added. These stocks
have already performed well this year. The SEMIndex, a global equity
index of 66 chip-equipment makers, has risen nearly 64% since the
index's inception at the beginning of the year. The index was created in
part to differentiate the performance of the chip-equipment sector from
the Philadelphia Semiconductor Index, which is the benchmark for chip
stocks.
Reports emerging from next week's industry trade show, SEMIcon West,
should also confirm the continued upturn in the sector, White said. MR |
