Monday, March 7, 2011

Wells (WFC) Top Semi Picks are Intel (INTC), Qualcomm (QCOM), Linear Technology (LLTC), Analog Devices (ADI), Xilinx (XLNX), Altera (ALTR)

Even though Wells Fargo (NYSE:WFC) chip analyst David Wong downgraded his outlook on semiconductor stocks from "Overweight," he still likes Intel (INTC), Qualcomm (QCOM), Linear Technology (LLTC), Analog Devices (ADI), Xilinx (XLNX) and Altera (ALTR) in the sector.

Wong said, “We continue to expect solid semiconductor industry growth in 2011, of 10-15%, with many chip companies maintaining the high levels of profitability demonstrated in 2010.”

“The trend for worldwide semiconductor sales continues to track roughly in line with to somewhat above our expectations,” added Wong, who also said inventory levels are "appropriate" at this time.

Wong considers less desirable Broadcom (BRCM), Advanced Micro Devices (AMD), Microsemi (MSCC) and Micron Technology (MU), citing high valuations, low profit and company-specific risk.

Wong maintains Market Perform ratings on Maxim (MXIM), Texas Instruments (TXN) and National Semiconductor (NSM).

No comments: