Semiconductor Innovation Fueling Growth of Optical Networking Industry; Banc of America Securities' Analyst Tells Investors Expansion Shows No Signs of Abating
SAN FRANCISCO, Sept. 19 /PRNewswire/ -- The following is being issued by Banc of America Securities, a member of the National Association of Securities Dealers, CRD number 26091:
Innovation, sustained by proprietary network entrenchment and regeneration, will assure investment opportunities in the broadband networking industry for decades, says Banc of America Securities' Semiconductor Research Vice President Alex Gauna.
(Photo: newscom.com )
"The breadth of the industry remains in an accelerating expansion mode with no signs of abating," Gauna said. "We believe a fresh Internet infrastructure design cycle is underway that supports rising ASPs and/or increasing unit volumes across a broad spectrum of optical, WAN, enterprise, and access devices."
Gauna's comments came at the 30th Annual Banc of America Securities Investment Conference, which runs through Sept. 23 at the Ritz-Carlton Hotel in San Francisco. The five-day conference features 250 presentations from companies that are driving the Business Services, Consumer & Retail, Energy, Entertainment, Media & Telecom, Financial Services, Health Care, Industrial Growth, Real Estate & Lodging and Technology industries.
He noted that the semiconductor industry is made up of some of the most technologically advanced and well-capitalized companies the world has ever known. Gauna said that as the industry has moved from vertical to horizontal alignment, and that value capture by broadband semiconductor players is mimicking trends seen over time in the personal computer market. Gauna believes this trend supports triple digit growth rates over the next several years for semiconductor companies taking a full systems solution approach to their target markets.
According to Gauna, as the pace of communications infrastructure innovation gains momentum, trends to watch in 2000-2001 include:
-- Acceleration of engineering activity in all network elements
-- The ongoing buildout of the optical infrastructure
-- Increased wide area network (WAN) sophistication with the advent of
volP/1Gbps and 10Gbps Ethernet
-- Proliferation of interactive broadband cable, xDSL, digital set top,
broadband wireless VoDSL and VoCable
-- Advances in wireless devices including web pads, PDAs, ultra-lite
notebooks and micro-displays
-- New materials for process technologies including Silicon Germanium
(SiGe), Indium Phosphide (InP) and Silicon Carbide (SiC)
Some of the broadband semiconductor stocks Gauna recommended include Applied Micro Circuits (Nasdaq: AMCC), Broadcom (Nasdaq: BRCM), Conexant (Nasdaq: CNXT), Exar Corp. (Nasdaq: EXAR), PMC-Sierra (Nasdaq: PMCS), and Tvia (Nasdaq: TVIA). In the area of final millimeter opportunities, i.e. 3G wireless handsets, PDAs, and other mobile Internet appliances, Gauna particularly likes Cree Inc. (Nasdaq: CREE) and Power Integrations (Nasdaq: POWI).
Banc of America Securities, a subsidiary of Bank of America Corporation, is a full-service investment bank and brokerage firm. With principal offices in San Francisco, New York City and Charlotte, Banc of America Securities employs more than 4,200 associates in offices around the country and, with affiliates, offers capabilities worldwide.
Bank of America, with $680 billion in assets, is the holding company for the largest bank in the United States. It provides international corporate financial services for more than two million businesses conducting transactions in 190 countries. More corporations, small businesses and consumers use online banking and investing services from Bank of America than any other financial services company in the United States. The company's stock (ticker: BAC) is listed on the New York, Pacific and London stock exchanges, and certain shares are listed on the Tokyo Stock Exchange.
SOURCE Banc of America Securities
CO: Banc of America Securities; Bank of America Corporation
ST: California
IN: FIN MLM
SU:
09/19/2000 14:22 EDT prnewswire.com |
