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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (6692)	11/4/2002 4:56:52 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95546

UPDATE 2-Chip stocks up on Microsoft ruling, sector outlook Monday November 4, 4:49 pm ET biz.yahoo.com (Updates with closing stock prices) NEW YORK, Nov 4 (Reuters) - Shares of semiconductor makers rose on Monday, boosted by Friday's Microsoft (NasdaqNM:MSFT - News) ruling that upheld the software company's settlement with government regulators and as investors bet that prospects for chipmakers could improve next year. Communications chipmaker PMC-Sierra (NasdaqNM:PMCS - News) shares rose 11 cents, or 1.8 percent, to close at $6.40 on the Nasdaq. The Philadelphia Semiconductor Index .SOXX climbed 4.2 percent, as the Nasdaq rose 2.6 percent. "I think the Microsoft ruling is background that might help PC sales," said Gerard Klauer Mattison analyst Jack Geraghty, who noted that the ruling followed positive signs for an improvement in consumer electronics demand. "Chip memory prices have also being going up in the last few weeks and some Taiwanese computer component makers posted good results," Geraghty said. "Investors are probably looking forward now to next year." "Despite the sector's nearterm terrible news, investors must be looking forward. Chip companies have done what they need to do and cut capital spending and expenses," Wedbush Morgan Securities analyst David Wu said. "What moves these stocks is the outlook for 2003. You wouldn't want to be in semiconductors unless you were bullish. The macroeconomics look weak in the fourth quarter and stronger in the first quarter next year." Wu added. Also boosting chip stocks was increasing sentiment among some analysts that demand overall is improving, even though this year so far has seen a gradual and uneven recovery. "While the recovery may not be great in the U.S., it is definitely occurring," wrote Lehman Brothers analyst Dan Niles about the computer hardware industry, which fuels demand for the semiconductor industry. He added that, according to data released by the Semiconductor Industry Association last week, both of the largest semiconductor segments, memory chips and microprocessors, saw sales rise year over year and those two areas "should see even better growth in the months ahead." Niles began upgrading computer-hardware stocks in July, with an upgrade of Dell Computer Corp. (NasdaqNM:DELL - News). Since then he has upgraded his view of the computer-hardware sector, upgraded International Business Machines Corp. (NYSE:IBM - News) and upgraded Hewlett-Packard Co. (NYSE:HPQ - News) Another analyst said the fluctuations were part of a general improvement in sentiment toward technology. "It's very difficult to say why PMC or any other communications chip maker is up. We've not seen a whole lot of change in the end market fundamentals," Bank of America Securities analyst Sandy Harrison said. "As the market has had nice upswings lately investors tend to come to the stock with the higher (volatility) like communications chips," Harrison added. Shares of another communications chipmaker, Broadcom Corp (NasdaqNM:BRCM - News), rose $1.21, or more than 9 percent to $14.22 in midafternoon trading. Shares of Intel Corp. (NasdaqNM:INTC - News), the world's largest chipmaker, were up 47 cents, or 2.6 percent to $18.77 on the Nasdaq, while Texas Instruments (NYSE:TXN - News) rose 25 cents, or 1.5 percent to $17.04 on the New York Stock Exchange.