Aug 9, 2011
12:37 PM
Semiconductors: Wells Ups To Overweight; Intel Top Pick
Posted by Tiernan Ray You’d better get back into semiconductors, writes David Wong of Wells Fargo today, predicting better times ahead for stock group that was among the hardest hit in tech in last Thursday’s sell-off.
Wells raised his rating on the group to Overweight from Market Weight.
Wong sees 10% year-over-year growth in semi sales by December of this year, he writes, after declines of 2% to 4% in each month of the June quarter. Improving demand in this latter half of the year will couple with easier comparisons to the weak second half of last year.
Then, too, Wong sees semi inventories being relatively healthy at between 30 and 80 days “in most segments of the supply chain.”
Wong assigns an Outperform rating to Intel ( INTC), Altera ( ALTR), Analog Devices ( ADI), Xilinx ( XLNX), Qualcomm ( QCOM), Linear Technology ( LLTC), and Micron Technologies ( MU). Intel is his “top pick,” while ADI, Qualcomm, and Linear are “highlights” of the industry upgrade, he notes.
Nvidia ( NVDA), National Semiconductor ( NSM), Texas Instruments ( TXN), Maxim Integrated Products ( MXIM), Broadcom ( BRCM), Microsemi ( MSCC), and Advanced Micro Devices ( AMD) are all rated Market Perform. He has no Sell ratings on any stocks.
Chips today are broadly higher, though some of Wong’s less desirable ones are in fact those that are rising the most. |
