ASML (Nasdaq:ASML), Lam Research (Nasdaq:LRCX), Varian Semi (Nasdaq:VSEA), Teradyne (NYSE:TER) Top Picks for Barclays (NYSE:BCS)

Barclays (NYSE:BCS) gave their investment update for the U.S. Semiconductor Equipment sector, and their top picks are ASML (Nasdaq:ASML), Lam Research (Nasdaq:LRCX), Varian Semi (Nasdaq:VSEA) and Teradyne (NYSE:TER).

Barclays said, "Where to Focus in 2011 - Top Picks Remain ASML , Lam Research, Varian Semi, and Teradyne. We have Upgraded Applied Materials (Nasdaq:AMAT), Advanced Energy (Nasdaq:AEIS) and MKS Instruments (Nasdaq:MKSI) to Overweight, and Downgraded Cymer (Nasdaq:CYMI) to UW: ASML remains the best secular story led by Immersion/EUV. LRCX should continue to gain share in etch, and offers the best leverage to NAND and Foundry. VSEA offers exposure to growth from solar, a headwind in 2010 that we expect will turn into a tailwind in 2011. TER remains our favorite back-end name, where consensus has already discounted weakness in SOC with likely growth from memory/HDD. We upgraded AMAT to Overweight on view that silicon share gains plus cost cutting will enable this underappreciated asset to begin to gain favor. We upgraded AEIS and MKSI to 1-OW led by very attractive valuation and strength in solar inverter sales for AEIS and broad-based strength for MKSI. Finally, we downgraded CYMI to 3-UW on valuation."

ASML closed Friday at $38.22, up $1.06, or 2.85 percent. Lam Research was at $51.85, up $0.61, or 1.19 percent. Varian Semi closed at $37.03, up $1.66, or 4.69 percent. Teradyne closed at $13.87, up $0.07, or 0.51 percent.