Chinmoy, The chip makers are bound and determined to go broke during this chip glut, so they are still adding equipment that will cause the glut to grow even larger. I expect that trend to stop soon, as DRAM prices have fallen to breakeven and Intel is about to fall on its face, and that is basically the chip market. Yes, there are other small areas, SRAM and non-volatile memory, which are also in glut, and logic chips, where Altera is doing so wonderfully. -g- Seriously, there are some pockets of strength in chips, at least temporarily, but these segments of the chip business are so small that they are non-events to equipment sellers.
So, if you are in for the very short term, 3 months or less, you may hold your nose and hope the herd continues to be fooled by the new orders to chip equipment cos. Longer term, I think you will lose less money in Microsoft and Dell. And, of course, you can do much better on a risk reward basis than with bloated stocks like MSFT and Dell, even in the tech area. Good luck, MB |
