Mention of CATS and a strong forecast from Chase H&Q:
[reposted from Yahoo]
Comments from Chase H&Q
by: iamcriswoh 11/16/00 12:02 pm
Msg: 1974 of 1974
* Semiconductors: Our Current Semiconductor Outlook and Best Names
Recent datapoints from our contacts within the semiconductor industry and from various end customers in the handset, PC & peripherals, automotive, digital consumer and networking end markets continue to indicate to us that demand in general for ICs continues to be healthy and robust.
Furthermore, most companies in our universe that participate in the commodity IC market (with the exception of DRAMs) such as low density Flash (up to 8 Meg), Serial EEPROMs, Parallel EEPROMs, and SRAMs continue to maintain pricing power in the marketplace with their end customers. This indicates to us that meaningful supply has yet to come on line. We did not expect so either. Adding to all this, on the commodity IC side, some of the recent commentary coming from the companies that we either cover or monitor, small and large - Advance Micro Device's analyst meeting on 11/09, Integrated Device Technology's mid quarter update yesterday and Catalyst Semiconductor's results yesterday - also continues to suggest that pricing on commodity Flash, Serial EEPROMs, Parallel EEPROMs, and SRAMs continues to be firm and stable and that visibility continues to be normal and has not deteriorated.
Net net, demand continues to be strong and supply, while having improved during the 2H of this year (as expected) is clearly not anywhere close to derailing the current dislocation in fundamental supply Vs demand. As we have said before we expect this scenario to continue into 2001. As such, we continue to maintain our Strong Buy ratings on our favorite names and Buy ratings on the rest of our stocks in the sector.
Our Strong Buys continue to be: ALTR (price target $75); XLNX ($105); ATML ($30); IDTI ($125); MCHP ($60); SSTI ($50).
Our Buys continue to be: INTC ($50); AMD ($35); MU ($65); LSI ($65); STM ($80).
We would be aggressively building positions in these names. |
