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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (181350)	5/24/2005 10:19:31 AM
From: Proud_Infidel	Respond to of 186894

Four Semiconductor Picks Poised To Outperform 05.24.05, 9:47 AM ET J.P. Morgan Securities remained bullish on semiconductors after the Semiconductor International Capacity Statistics (SICAS) organization released first-quarter results for global integrated circuit wafer fab capacity and utilization. Approximately in line with the research firm's expectations, industry utilization fell to 86% in the fourth quarter of 2004 to 85% in the first quarter of 2005. "Utilization rates are a primary driver of gross margins and we believe utilization rates have bottomed and should increase in the upcoming quarters since inventories at distributors and OEMs remain low and demand should seasonally increase in the second half of 2005." Capacity growth as reported by SICAS was 3% quarter-over-quarter, higher than J.P. Morgan's estimate, leading the research firm to raise its 2005 year-over-year growth estimate to 10% from 8%. Turning to wafer units, demand increased 1% quarter-over-quarter, above J.P. Morgan's estimate but under the 2% normal seasonal increase. The research firm adjusted its 2005 year-over-year demand growth outlook to 4% from 1%. J.P. Morgan concluded that "several leading indicators such as gross margins, utilization rates, earnings estimates and year-over-year growth rates have troughed and should begin to improve in the second half of 2005. We believe companies with the highest leverage and/or reasonable valuation should outperform such as Intel (nasdaq: INTC - news - people ), Cypress Semiconductor (nyse: CY - news - people ), ON Semiconductor (nasdaq: ONNN - news - people ) and International Rectifier (nyse: IRF - news - people )."