Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Cary Salsberg who wrote (10326)	6/26/2003 8:16:44 AM
From: Alastair McIntosh	Respond to of 96306

CSFB sees some strength in PC end markets; IT Hardware - Data Confirms End Market Recovery • Two and half months ago when we upgraded our IT Hardware industry rating to Overweight there was only marginal evidence of an end-market recovery. Since then, there have been several data points that confirm a measurable improvement in end demand in several key segments of the IT Hardware industry. • Last night, NPD Intelect released its US retail PC sales data for the month of May and for the second month in a row PC shipments exhibited positive unit growth. Total units in May grew 17% y/y, the highest growth rate since August 2000. As expected, notebook sales drove most of the strength, growing a whopping 57% y/y, while desktop growth was flat. Incidentally, the last time desktop shipments increased y/y was in January of 2001. It is important to note that NPD only represents a small portion of the overall market, but it has proven a good indicator of general market trends. • This retail information is consistent with several other datapoints recently publicized: • 1) CC ($8-NR) and BBY ($43-NR) both experienced strong demand for notebook PCs in their May quarters due to Wi-Fi adoption. • 2) INTC ($20-NR) and MU ($12-NR) noted PC sales for Q2 would come in at the high end of seasonal patterns. • 3) Data released yesterday from the US Commerce department indicates that orders for "Computers and Related Products", which also includes storage and peripherals, posted +7% YTD increase (through May) compared to -18% growth a year ago at this time. • 4) The SARs scare is ebbing in China and motherboard demand volumes have rebounded sharply in recent weeks. • 5) Graphics chip maker ATI (ATYT-$10-NR) exceeded current quarter expectations and pointed to better growth in future quarters. • We remain comfortable with our 2003 PC unit estimate of +7% and our -6%q/q for 2Q03, which is traditionally the slowest quarter in the year. Based on a growing number of positive sell through data points we are more likely to raise rather than lower our 2003 PC unit growth forecast.