Tom,
Someone emailed me this article. Any comments? I don't follow this analyst and don't have a sense of his credibility, but here is the post:
Eric Jhonsa (from tsrec) is dropping VTSS in favor of AMC:
tsrec.com
Why I Dropped Vitesse:
I've dropped Vitesse Semiconductor as a recommendation in favor of Applied MicroCircuits. Previously, optical communications chips made via gallium arsenide offered significant performance benefits in regards to speed when compared with competing technologies. Chips made of materials such as bipolar silicon and silicon germanium were considered to be low-end technologies. Thus Vitesse, which dominated, and still does dominate the GaAs optical communications chip market, was in a very good position. However, in a trend that I'm sure Clayton Christenson could have a field day with if he ever choses to do a revised edition of "The Innovator's Dilemma," Si and SiGe-based chips have recently caught up to their GaAs counterparts in regards to performance, all the while costing far less to produce. In a sense, this is very similar to what happened in the LED market. When Cree came out with its first silicon carbide LEDs, they were far inferior to Nichia's sapphire LEDs when it came to brightness. However, technological advances on Cree's part have now made the two competing products virtually equal in brightness, with Cree's products costing roughly half as much. Just as Cree turned the tables on Nichia in the process, it appears that Applied Micro's turned the tables on Vitesse in a similar manner. |
