To: t2 who wrote (33786 ) 11/11/1999 2:38:00 PM From: taxman Respond to
Semiconductor Stocks : Not that the chip stocks needed any more help, but what the heck, when it rains it pours. Today's rainmaker is Merrill Lynch analyst, Joe Osha, who raised price targets on a host of chip stocks, and increased his estimate for the chip industry's revenue growth rate in the year 2000 from 18.6% to 21.5%. That revenue revision is now pretty much in line with the 21% growth rate targeted by the Semiconductor Industry Association (SIA) in its report released Oct. 28. In Osha's eyes, things look even more upbeat next year for the integrated circuits segment of the market as he is forecasting revenue growth of 22.7%. As most investors are aware by now, the chip stocks have had a phenomenal run this year as the industry picture has become considerably brighter than it was in 1997 and 1998 given the stabilization in Asian economies and the robust demand for chips driving PCs, Internet infrastructure, and wireless communications. This improved backdrop isn't expected to end anytime soon either as Osha believes it could continue for the next three-to-four years, and that because of a lack of capacity, inventory gluts won't be much of an issue during that time. Thus, more bullish backing for this resurgent group which is giving investors added ammunition to use any dips as a buying opportunity. Included in the table below are those stocks-- many of which are hitting new highs-- that had price targets lifted by Osha.-- PJO
