Thursday, April 14, 2011

Semi's Shaky as (TXN) (INTC) (SNDK) (QCOM) (CY) Earnings Season Approaches

With growing uncertainty surrounding the semiconductor industry after the earthquake and tsunami in Japan, Texas Instruments (TXN) will be the first to report first-quarter earnings Monday, with Intel Corp. (NASDAQ:INTC) posting its quarterly results on Tuesday, followed by other chip companies reporting next week like Qualcomm Inc. (NASDAQ:QCOM), SanDisk Corp. (NASDAQ:SNDK) and Cypress Semiconductor Corp. (NASDAQ:CY).

It appears guidance will be paramount to investor response, as the supply and demand picture could weigh heavily on the sector going forward.

The earnings report should be decent for most chip suppliers, as pricing for NAND and DRAM chips have been finding some strength. but there's no doubt the wafer supply chain is broken, and a new challenge are the power supply issues.

Consequently the current quarter looks very weak, and investors will look there rather than at last quarter's results.

No comments: