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Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: William Epstein who wrote (275)	12/3/1998 1:27:00 PM
From: LK2	Read Replies (1) \| Respond to of 1989

Strong day for tech stocks in today's weak market For Personal Use Only cbs.marketwatch.com ========================= Component demand fuels hardware shares By Binti Harvey, CBS MarketWatch Last Update: 12:50 PM ET Dec 3, 1998 NewsWatch NEW YORK (CBS.MW) -- Hardware stocks forged ahead Thursday, as indications of strong component demand stoked the fire under semiconductor shares. The Philadelphia Semiconductor Index gained 5.3 percent while the Morgan Stanley Hardware Index climbed 0.8 percent. Micron Technology Inc. (MU) set the pace for chip shares, climbing 2 15/16 to 48 11/16 as CS First Boston upgraded the shares to "strong buy" from "buy." Analyst Scott Nirenberski cited an earlier-than-anticipated shift to production of 0.18 micron wafers and expectations of a recovery in DRAM prices in the second half of 1999. "The stabilization of prices and the continued strong demand is primarily from the PC business, particularly in Asia," Nirenberski said. He expects PC memory requirements to grow more than 25 percent in 1999. Shares of programmable logic chipmakers also gained ground as Prudential Securities analyst Hans Mosesmann upgraded Xilinx Inc. (XLNX) to "accumulate" from "hold." Mosesmann attributed the upward revision to robust networking end-market demand. Rival Altera Corp. (ALTR) also gathered momentum as J.P. Morgan's Terry Ragsdale said business in October and November was better than anticipated. Ragsdale expects both Altera and Xilinx to outperform estimates amid improving industry conditions. Xilinx rose 3 13/16 to 60 1/4, while Altera gained 4 1/16 to 57 1/8. Industry optimism infected other chipmakers as well. Intel (INTC) gained 2 1/16 to 115 5/8, Rambus (RMBS) rose 4 1/4 to 99 3/8 and Texas Instruments (TXN) rose 2 15/16 to 81 11/16. Disk drive makers also built on recent gains amid reports of firming prices and increasing demand. Western Digital (WDC) rose 1 1/16 to 17 11/16, Seagate Technology (SEG) rose 1/2 to 33 1/4 and Hutchinson Technology (HTCH) added 1 1/16 to 33 9/16. Reports of robust demand at Compaq Computer (CPQ) reflected improving conditions for component makers. Compaq rose 1 3/8 to 37 15/16 after BancBoston Robertson Stephens raised its investment rating to "strong buy" from "buy." "Compaq is currently seeing record levels of demand," said analyst Daniel Niles. "We For the first time in a year, investors now can wonder how much upside instead of downside there is to estimates." Other computer hardware manufacturers lagged. International Business Machines (IBM) rose 3/8 to 167 13/16. Dell Computer (DELL) slipped 1/16 to 66 1/8 despite an upbeat presentation to investors at the Credit Suisse First Boston Technology Conference. Hewlett-Packard (HWP) was unchanged at 63 3/8, Sun Microsystems (SUNW) lost 1/8 to 74 and Gateway (GTW) drifted 3 3/16 to 55 1/4 on concerns about its ability to meet revenue growth estimates. Binti Harvey is a reporter for CBS MarketWatch. © 1998 MarketWatch.com, L.L.C. =============