Semiconductors Defy Concerns With Positive Mid-Quarter Updates, Says The Tech Briefing
<<Mar 30, 2005 (financialwire.net via COMTEX) --
March 30, 2005 (FinancialWire) (Investrend Research Syndicate) Several stocks in this week's The Tech Briefing are defying widespread concerns with several mid-quarter updates, says this week's The Tech Briefing, which covers key Tech Stocks including Intel (Nasdaq: INTC), Altera (Nasdaq: ALTR), Xilinx (Nasdaq: XLNX) and KLA-Tencor (Nasdaq: KLAC).
In the post-earnings season lull, investors and analysts have returned to the task of measuring market demand-an indicator off where IT stocks will be six months from now. The news is mixed, with semiconductors in better shape than theyaEUR"re given credit for, and tech distributors heading for trouble. HereaEUR"s an update on the trends in end user demand and how itaEUR"s impacting certain IT sub-sectors, and other news from around the industry.
Semiconductor companies defied widespread concerns over end market demand with several positive mid-quarter updates. Intel said demand has been strong across all products, especially notebooks. Altera and Xilinx raised their revenue guidance for the quarter on strength in 3G wireless chip demand. David Wong of A.G. Edwards believes that the continuing reduction of inventories and rebound in demand for certain parts of the industry suggest that the group will see accelerating growth over the coming months. He maintains a Buy rating on each of INTC, XLNX and ALTR.
Equipment providers continue to be hit by lagging foundry demand, but some are finding ways to thrive anyway. KLA-Tencor has relied on new products and innovation to claim market leadership in 22 of its 25 product areas. WR HambrechtaEUR"s Gerald Fleming likes the stock, and recently reiterated his Buy rating and $52 target price. He said that the technology transition to 65nm and 300mm wafers should drive growth for KLAC in the second half of the year. The company is his top large-cap pick in the equipment space.>> |
