One guy thinks INTC may not yet be overbought...
Looks good for the whole sector including this thread's favourite.
Extract from a Dow Jones Newswires release follows.
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Chip Stks -2:Intel May Preannounce Positive 3Q - Analyst
By MARIA V. GEORGIANIS and CHRISTOPHER GRIMES
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Chip companies are having a good quarter as the PC market prepares for its strongest periods, the back-to-school and Christmas seasons. This is helping chip companies like Intel Corp. (INTC) and memory maker Micron Technology Inc. (MU)
In fact, Intel could pre-announce that its third-quarter business is better than expected, said David Wu, an analyst at ABN Amro.
For long-struggling Micron, the news is also improving as DRAM prices continue to rise. DRAMs, or dynamic random access memory chips, are the most common chip found in a PC.
Tuesday, the price of a 64-megabit DRAM ranged between $11 and $12 on the spot marker, said Wu, the ABN Amro analyst. In contrast, they cost $7.27 on Aug. 18, he said.
DRAM makers are having a rough time transitioning to the next generation of chip, known as 0.18 micron. Consequently, the newest, fastest DRAMs are in shorter supply, driving prices up, Wu said.
"Virtually every day (DRAM prices) have been up," he said. "And the rate of increase is accelerating."
An improving DRAM market - and the transition to the new 0.18 micron chips - is helping semiconductor equipment makers, too.
"The chip equipment guys sound a lot more bullish than they did a month ago," Wu said.
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