The following piece is from Smart Money Semi Outlook, Networking sub-section :
"With PC growth having slowed last year, the 50% annual growth
in the networking business may be the most important market for
enabling technology. Fiber optic networking providers like
Qwest Communications (QWST) can't roll out new lines fast
enough to meet Internet demand. Sounds like a job for Cypress
Semiconductor (CY), which has developed a variety of chips
for controlling signaling in fiber optic lines.
Level One Communications (LEVL), whose stock was riding
high this fall in the upper 40s, has expertise in the kinds of
transceiver chips needed to make the line cards and hubs for
Ethernet networking, as well as access devices for the
telecommunications field. At a trailing price-to-earnings ratio in
the mid-30s, the company's price tag has gotten a lot cheaper
since it started descending with other stocks in the past few
months. That's still above the industry average P/E of 24, but if
you believe the analysts, the company's growth will top industry
growth this year and next, not to mention being several times the
S&P's expected growth.
Another darling is LSI Logic (LSI), which is diversifying its
product line to include not just multimedia encoding silicon but
also chips for high-end routers from Cisco (CSCO) that will
transport a billion packets of data per second across the Internet."
smartmoney.com
Mang |
