Tech Analysts Bullish On Semi Industry In '98
(01/28/98; 6:41 p.m. EST)
By Jennifer L. Baljko, Electronic Buyers' News
While it appears that the bears will take over the financial
markets this year, semiconductor analysts at NationsBanc
Montgomery Securities are hanging on to the bull's horns.
With the 1996 industry-wide pricing debacle behind it, the
period of recovery that started in 1997 will follow into 1998,
said analyst Jonathan Joseph at the company's annual
Technology Week conference in San Francisco Tuesday.
"1998 will be good year for recovery," he told company
executives and investors. "Commodity prices, particularly for
DRAMs are firming up. Inventories levels are low. Demand is
strong."
Some of the drivers that will fuel the semiconductor industry
include growth in the PC segment, new communications
products, and a modest upturn in the automotive, industrial
and consumer markets.
Although the Asian financial crisis raised concerns late last
year about a regional slowdown in demand, much of those
fears have been put to rest, in part because of the continued
strength in other areas, he added.
"The semiconductor industry largely discounted those
fears," Joseph said. "There is still strong growth in China and
India, and that has made up for the weaker areas." |
