[DSP's, chips in general, and the market overall]
Most chipmakers are down today after Altera's steering future earnings estimates downward. Today, Tom Curlack (spelling?) of Merrill Lynch has downgraded the group including DSP makers like TI on the basis of over capacity. His pessimism extends out one or two years.
My editorial (FWIW), is be careful with your timing if getting into these markets for the long haul. Together with the Japan/Korea/Asia problem, the downside potential for the tech's has not been fully explored in my opinion. There is far too much complacency with regards to the trouble in the world's second largest economy in the world, Japan. If after government injection of liquidity, we see more of the japanese facade fall down, then the downside can only be left to the imagination. I don't think Greenspan will let it get out of hand, but then again, if there is a run on japanese banks, all bets are off.
Still in Amati,
Richard |
