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

To: The Ox who wrote (85936)	11/17/2020 1:29:56 PM
From: Elroy	Read Replies (2) \| Respond to of 95427

It's also probably that the massive consolidation over the past few years has increased the profitability and decreased the competition level in semiconductors. So that's probably part of the past few years of runup. Just look at the analog sector. Four years ago we had major companies TXN, ADI, MXIM, LLTC and and (there's a 5th biggie, I forget the name). We now have two analog companies, and analog chips are important (so they're going to sell) and the technology is hard to duplicate (so new entrants are unlikely). Once the industry consolidates to a certain degree, the analog maker can determine that the proper gross margin for it's chips is not the historical 65% when there was competition, instead it's now 80%, voila, massive profit flows to the company until some newbie tries to enter and compete on price (good luck!). Which makes me think - TXN should just buy ADI, and then increase prices two years later.....