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Hardware shares heat up on '99 outlook
By Binti Harvey, CBS MarketWatch
Last Update: 4:30 PM ET Jan 7, 1999
NewsWatch
NEW YORK (CBS.MW) -- Computer hardware and semiconductor shares
vaulted higher Thursday amid growing confidence that the industry's will
sustain its momentum in 1999.
The Goldman Sachs Computer Hardware Index
surged 1.1 percent while the Philadelphia
Semiconductor Index gained .8 percent Thursday
afternoon.
A rash of improved outlooks for the industry in 1999
drove gains for many stocks. In recent industry
forecast calls, several analysts have revised
expectations upward on indications that strength will
outlast the traditional seasonal uptick.
"We are expecting 17.5 percent PC demand growth
and over 20 percent PC production growth for 1999,"
said PaineWebber analyst Don Young.
PC makers capitalized on the positive sentiment, as
International Business Machines (IBM) rose 1 7/16 to
190 3/16, Apple (AAPL) climbed 3 1/4 to 45, Compaq
(CPQ) rose 1/8 to 44 1/2, Gateway (GTW) gained 2
5/16 to 58 5/8 and Dell (DELL) added 1/16 to 78
3/16.
The rosy outlook translated into big gains for PC component makers as well.
Micron Technology (MU) rose 4 3/8 to 64 on expectations of
stronger-than-expected demand in the first quarter. Gruntal & Co. analyst
Mona Eraiba said she's "optimistic on Micron," and anticipates healthy
demand and pricing to extend beyond the holiday season.
Intel (INTC) fell 1/4 to 129 1/4.
Disk drive makers also advanced. Seagate Technology (SEG) rose 1 3/16 to
35 3/4, Western Digital (WDC) rose 1 1/2 to 18 and Hutchinson Technology
(HTCH) gained 6 7/16 to 44 7/16. |
