Dear Glen: This lady is an analyst with Gruntal and company. She seems to agree with you. JDN
Which semiconductor company stocks do you recommend buying?
Mona E. Eraiba: The answer to your question depends upon your risk tolerance. For growth investors, we recommend Intel Corporation, LSI Logic, Motorola and, of course, Texas Instruments. If you consider yourself an aggressive growth investor, we like Micron Technology. MU is a volatile company due to the commodity nature of the memory business. The dynamic random access memory (DRAM) market is highly cyclical and a capital intensive. Since capital spending was curtailed during the last three years, and no new greenfields are in place for 2000, we favor the industry's lowest-cost producer, Micron.
Other companies in our universe that stand to benefit during the upturn are Burr-Brown, Integrated Device Technology, International Rectifier and LTX Corp. Burr-Brown participates in the analog market and trades at a significant discount to its peers. Integrated Device Technology has exited the X86 processor market and is capitalizing on the communications market with leading-edge capacity to leverage its performance. International Rectifier specializes in regulating and controlling power consumption in automotive, motor control and several portable products, such as cell phones, laptop PCs, Internet appliances and personal digital assistants. LTX Corporation is a semiconductor test company that offers a unique single testing platform, Fusion, for the emerging system-on-a-chip (SOC) market. According to Dataquest, the size of the SOC market in 1998 was $9.1 billion in 1998 and is expected to increase to $32 billion by 2003.
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