SEMICONDUCTOR
The past few weeks have not been kind to the chip sector as investors have started cashing in on big gains recorded over the past year or so... Pullback coming despite fact that demand remains brisk and earnings strong... However, market is forward looking and investors now fretting that industry upturn will begin to lose steam by year's end... And with valuations where they are, one can argue that much of the good news is still priced in... But IMO that pessimism has more to do with general market malaise than with any real threat to industry conditions - particularly in the communications/comsumer electronics segments where growth prospects look very strong for the next couple of years... I view recent pullback as good (re)entry opportunity for intermediate- to long-term investors seeking above average capital appreciation... Will we take out the old highs? Don't rightly know, but with many of the stocks off their highs by 30%-40% there is plenty of room for gains... As such I maintain top rating on the group.
Stocks: Advanced Micro Devices (AMD), Altera (ALTR), Analog Devices (ADI), Atmel (ATML), Broadcom (BRCM), C-Cube Microsystems (CUBE), Conexant (CNXT), Cypress Semiconductor (CY), Dallas Semi (DS), Intel Corp. (INTC), LSI Logic (LSI), Lattice Semiconductor (LSCC), Linear Technology (LLTC), Micron Technology (MU), Motorola (MOT), National Semiconductor (NSM), PMC-Sierra (PMCS), QLogic (QLGC), RF Micro Devices (RFMD), Rambus (RMBS), S3 (SIII), 3Dfx Interactive (TDFX), Texas Instruments (TXN), Vitesse Semiconductor (VTSS), Xilinx (XLNX).
5/30/00 |
