Oppenheimer analyst: chip demand continues to improve, driven by PC, TV and smart phone chips
By APTuesday, March 16, 2010
Ahead of the Bell: Chip demand still improving
NEW YORK — Driven by the personal computer, television and smart phone markets, demand for semiconductors continues to improve and is ahead of what’s generally expected for this time of year, according to Oppenheimer analyst Rick Schafer.
“The typical Chinese New Year-related slowdown appears to have been more muted this year, with orders quickly regaining momentum in the days/weeks since,” the analyst wrote in a note to investors.
Schafer said the fundamental outlook for semiconductors “continues to improve.” He said while inventories remain tight, they appear to have hit bottom, and are poised to grow in the first quarter.
“At this point in the cycle, we encourage investors to narrow their focus and pick stocks,” the analyst wrote in a note to investors.
Schafer’s favorites include Intel Corp., Nvidia Corp., Intersil Corp., Atheros Communications Inc., Marvell Technology Group Ltd. and NetLogic Microsystems Inc.
