In my opinion, the analyst give TXN and AMAT short shrift. I think they keep the lid on the price while they accumulate shares.
Those low voltage goodies that TXN announced recently will be valuable for future net appliances. TXN will also bring out digital audio devices this Christmas. TXN is also a Sun (SUNW) supplier. And AMAT supplies TXN!!!
AMAT will do very well with its new flat panel display company. There's a hue and cry for flat panel display. I've read the shortage is severe. Everyone wants the liquid crystal or flat panel displays because they like the style and the screen resolution is better.
Also, as you know, there will be a big demand for chips, all kinds of chips, DSP chips, for instance. TXN makes DSP chips and TXN is one of AMAT's customers. We will need ships for network appliances for telecommunications, for all kinds of things. So I think AMAT will be very busy in the future.
Unfortunately, when I've looked at the AMAT thread everyone talks about DRAM. And, as you know DRAM is type of chip used in PCs.Sonki, you know a lot about chips. Do you have an opinion?
The bottom line is analysts try to keep the lid on the price of AMAT and TXN. When TXN went up the other day, an analyst worried about inventories so the price dropped. So every time TXN goes up, an analyst knocks it back. Just watch!!
The future is bright so I believe the analysts attempt to keep the prices down so that their firms can accumulate AMAT and TXN shares at lower prices.
Goldman Sachs sort of blew the lid off when the company announced how well the European semis will do. Well, AMAT and TXN will also do well in the future, in my opinion.
Cheers,
Mephisto
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