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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (17175)	1/13/2006 10:58:51 AM
From: Gottfried	Read Replies (2) \| Respond to of 25522

Fitz bullish! 01/12/2006 5:38 PM EST) HALF MOON BAY, Calif. — Heading into 2006, the normally bearish analysts from Wall Street are finally upbeat about semiconductors and IC-equipment. The overall capital spending consensus forecast from Wall Street has been upgraded to positive 5 percent in 2006, up from flat in the previous prediction, according to a report from SG Cowen Securities Corp. In the report issued on Thursday (Jan. 12), investment banking firm SG Cowen indicated that it did not expect a “big ’06 spending cycle” for the IC industry. In total, SG Cowen sees 6-to-8 percent growth in capital spending in 2006 over 2005. SG Cowen also sees some positive signs in the overall sector heading into 2006, such as high fab utilization rates, low IC inventories, increasing chip demand and ongoing technology transitions. Silicon foundries are expected to boost their capital spending in 2006 after sitting on the sidelines in 2005, according to the firm. Others are bullish as well. Mark Fitzgerald, an analyst at Banc of America Securities, raised his forecast for capital spending to positive 4 percent in 2006, up from minus 8 in the original prediction. The semiconductor equipment industry is projected to grow 10 percent in 2006, up from minus 8-to-11 percent in 2005, Fitzgerald said at a panel session at the Industry Strategy Symposium (ISS) here on Wednesday (Jan. 12). So far, the semiconductor-equipment market is off to a “good start” in 2006, added Edward White, an analyst with Lehman Brothers, during the ISS panel event. There is a reason to be optimistic, as capital spending should be up in 2006, White agreed. Many chip makers under-invested in capital spending during the 2005 campaign, including the foundries, he said. “Foundry spending was very low [in 2005],” said Timm Schulze-Melander, an analyst with Morgan Stanley, at ISS. “This is unsustainable.” There are other positive signs. Chip demand and fab-utilization rates are high heading into 2006, said Brett Hodess, an analyst with Merrill Lynch Global Securities. Back in August, the investment banking firm jumped into the bull camp and raised its capital spending forecast to up 10 percent, he said. Overall, the semiconductor and fab-tool businesses are in what could be a “moderate, two-year up cycle,” concluded Stephen O’Rourke, an analyst at Deutsche Bank, during the panel session. thanks to ksn44 finance.messages.yahoo.com