Canaccord Genuity on Technology/Hardware: Semiconductor Devices and Related Technologies
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Price: $373.24 +0.81%
Rating Summary:
33 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
33 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity on Technology/Hardware: Semiconductor Devices and Related Technologies by Bobby Burleson
"Recent checks continue to show weak distributor sell-through, some foundry
rebound"
Burleson said, "We continue to see divergent trends for fabless semiconductors and board level components (analog, discrete, MCU, clocks), with the later signaling incremental weakness in September, while foundry wafer output points to some CQ4 recovery for fabless. We are trimming estimates for the board level companies in our coverage universe yet to pre-announce, including Analog Devices (NYSE: ADI), Atmel (Nasdaq: ATML), IDT Corp (Nasdaq: IDTI), and ON Semi (Nasdaq: ONNN). Fabless – healthy bounce for foundry, NVIDIA (Nasdaq: NVDA) seeing health Tegra, GPU demand Checks with leading foundry and assembly/test houses show a positive inflection in demand in the month of September, driven by overly aggressive inventory reduction efforts at many fabless semi companies. While some investors believe this recovery is limited to channel fill ahead of China Golden Week (first week of October), our checks indicate wafer output could rise in CQ4 and may be driven by broader health, including wireless handsets, SSD demand, and some stabilization for PCs (Acer expected to finish working down inventory at the end of September). Our top fabless pick off of recent channel checks is NVIDIA, as we expect the company to meet or exceed estimates for CQ3."
"Weak packaging demand continues for board level components, with all of the above driven by an inventory correction likely to last through the end of 2011. As a result, we expect weak CQ3 results and disappointing CQ4 guidance from semiconductor companies selling standard products through distributors. In our universe, pre-announcements or disappointing results are likely for ADI, ATML, IDTI, and ONNN. For CQ4, we believe guidance is likely to miss consensus for the above and for companies that have already lowered CQ3 guidance, including Fairchild (NYSE: FCS), Intersil (Nasdaq: ISIL), and Texas Instruments (NYSE: TXN). While recently stocks have largely traded higher on negative pre-announcements, we believe board level components (analog, discrete, MCU) should underperform fabless semiconductors in H2/11 as this group sees a protracted inventory correction in the face of signs of a moderate recovery for fabless semiconductors."
"Recent checks continue to show weak distributor sell-through, some foundry
rebound"
Burleson said, "We continue to see divergent trends for fabless semiconductors and board level components (analog, discrete, MCU, clocks), with the later signaling incremental weakness in September, while foundry wafer output points to some CQ4 recovery for fabless. We are trimming estimates for the board level companies in our coverage universe yet to pre-announce, including Analog Devices (NYSE: ADI), Atmel (Nasdaq: ATML), IDT Corp (Nasdaq: IDTI), and ON Semi (Nasdaq: ONNN). Fabless – healthy bounce for foundry, NVIDIA (Nasdaq: NVDA) seeing health Tegra, GPU demand Checks with leading foundry and assembly/test houses show a positive inflection in demand in the month of September, driven by overly aggressive inventory reduction efforts at many fabless semi companies. While some investors believe this recovery is limited to channel fill ahead of China Golden Week (first week of October), our checks indicate wafer output could rise in CQ4 and may be driven by broader health, including wireless handsets, SSD demand, and some stabilization for PCs (Acer expected to finish working down inventory at the end of September). Our top fabless pick off of recent channel checks is NVIDIA, as we expect the company to meet or exceed estimates for CQ3."
"Weak packaging demand continues for board level components, with all of the above driven by an inventory correction likely to last through the end of 2011. As a result, we expect weak CQ3 results and disappointing CQ4 guidance from semiconductor companies selling standard products through distributors. In our universe, pre-announcements or disappointing results are likely for ADI, ATML, IDTI, and ONNN. For CQ4, we believe guidance is likely to miss consensus for the above and for companies that have already lowered CQ3 guidance, including Fairchild (NYSE: FCS), Intersil (Nasdaq: ISIL), and Texas Instruments (NYSE: TXN). While recently stocks have largely traded higher on negative pre-announcements, we believe board level components (analog, discrete, MCU) should underperform fabless semiconductors in H2/11 as this group sees a protracted inventory correction in the face of signs of a moderate recovery for fabless semiconductors."
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