Joe Osha
Joe Osha
although began believe evidence hard highs hitting late next prices sector stock strongly support
It is very hard to find any evidence of a real end to the upturn that began in late 1998. Although we see little to support semiconductor stock prices during the next two months, we strongly believe that the sector will be hitting new highs before the end of the year.
analog building buy deal decision despite fits objective presence ratings rich somewhat specialist stated texas
Texas Instruments' decision to buy analog specialist Burr-Brown fits well with the company's stated objective of building its presence in the analog business. Despite the somewhat rich valuation for the deal, we think that the deal makes sense for TI. We reiterate our intermediate-term and long-term buy ratings for the stock.
checks generally line loaded market normal pc suggesting supports third tracking update
Intel's mid-quarter update was generally in line with our expectations, which supports our checks suggesting that the PC market is tracking normal seasonality in the back-end loaded third quarter.
momentum seen shift
I don't think I've ever seen competitive momentum shift like this, so congratulations.
effect
It's not going to effect the company's position.
advise beginning below buying concerns correction globally investors march stocks thesis
The concerns that underpinned our mid-cycle correction thesis are beginning to dissipate, and semiconductor stocks globally are well below their March highs. We would advise investors to begin buying semiconductors more aggressively.
appears building data dominant inventory less points question result stocks whether worries
One of the dominant worries here is the question of whether we're going to see any building of inventory that will result in 1Q weakening. But as the data points have rolled in, that appears to be less and less the case. That's pretty important, and you can see it, in particular, in some of the communications stocks that are moving.
consumer discrete graphics holidays processing push sales selling suffer unit
Without the consumer Vista push for the 2006 holidays selling season, we think that discrete graphics processing unit sales could suffer slightly.
driven fact growth intel market positive pushing reason stock
The reason I am positive on the stock right now is the fact they are pushing into servers, workstations -- the things that are being driven by growth in the Internet. That is a big market that Intel can dominate, I think, pretty quickly.
added although capacity change companies fourth happening less negative past rate terms themselves worst
What we see happening is a bottoming to the rate of change in the semiconductor business, which has been negative and less capacity being added by the fourth quarter, which is also good. So, although companies themselves are still very conservative we think that the worst is past in terms of the downturn here.
adjustment expect fact gains given impact low market negatively next numbers product share stock surprised
We are not too surprised by AMD's announcement and do not expect the adjustment to numbers to impact the stock negatively at this point. Given the fact that AMD's product lineup at the low end of the market is more competitive than Intel's, we expect to see market share gains in the first part of next year.
believe completed intel largely prior quarter shipping
We believe that Intel had largely completed shipping its quarter prior to Sept. 11.
believe coming forced intel pressure pricing respond
We believe that Intel will be forced to respond competitively to AMD in the coming year, which may put more pressure on Intel's pricing than we had expected.
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We wrote last November that Sony's design choices for the PS3 had resulted in an expensive and difficult-to-manufacture product, and we think that we're seeing the consequences of those choices play out now.