ASML (Nasdaq:ASML), Teradyne (NYSE:TER), Varian (Nasdaq:VSEA), Applied Materials (Nasdaq:AMAT), MKS (Nasdaq:MKSI), Advanced Energy (Nasdaq:AEIS) Top P

Barclays offered some thoughts after the CES last week, including their top picks in the sector, which include ASML Inc (Nasdaq:ASML), Teradyne (NYSE:TER), Varian Semi (Nasdaq:VSEA), Applied Materials (Nasdaq:AMAT), MKS Instruments (Nasdaq:MKSI) and Advanced Energy (Nasdaq:AEIS).

In LCD they continue to like Corning (NYSE:GLW) as their top pick. With LED they like Cree (Nasdaq:CREE) in the short term.

Barclays added, "Key catalysts this week include an earnings announcement from Intel on January 13 (where we expect positive comments on 2011 capex), a likely capex update/guide from GlobalFoundries on January 10 (expect capex guided higher than $2.7B in 2010), as well as a competitor's conference with presenting companies under coverage including Aixtron (Nasdaq:AIXG), Applied Materials (AMAT), Brooks (Nasdaq:BRKS), Cymer (Nasdaq:CYMI), IPG Photonics (Nasdaq:IPGP), Lam Research (Nasdaq:LRCX), LTX-Credence (Nasdaq: LTXC), MKS Instruments (MKSI), Novellus (Nasdaq:NVLS), Orbotech (Nasdaq:ORBK), and Varian Semi (VSEA)."

ASML closed Monday at $35.90, losing $0.41, or 1.13 percent. Teradyne closed at $13.64, down $0.06, or 0.44 percent. Varian closed at $37.32, down $0.10, or 0.27 percent. Applied Materials ended the session at $13.77, losing $0.19, or 1.36 percent. Advanced Energy ended the day at $13.52, gaining $0.07, or 0.52 percent.

ASML (Nasdaq:ASML), Lam Research (Nasdaq:LRCX), Varian (Nasdaq:VSEA), Applied Materials (Nasdaq:AMAT), MKS Instruments (Nasdaq:MKSI), Advanced Energy

Barclays released its favorites in the U.S. Semiconductor Capital Equipment sector, and they include ASML (Nasdaq:ASML), Lam Research (Nasdaq:LRCX), Varian (Nasdaq:VSEA), Applied Materials (Nasdaq:AMAT), MKS Instruments (Nasdaq:MKSI), Advanced Energy (Nasdaq:AEIS) and Teradyne (NYSE:TER).

Barclays said, "Not A Read-Through for Other Equipment Vendors: We would caution any investors to read this pre-announcement as suggestive of weakening trends at leading front-end equipment vendors. Apparently, Mattson (Nasdaq: MTSN) is seeing pushes of expedited tools to Samsung from 4Q into 1Q along with selected other pushes from tier 2 DRAM vendors. Our take here is that this is company specific and relates to MTSN's more limited customer base. Beyond MTSN, our checks throughout the supply chain in the last few days suggests there have been no change to business fundamentals over the last 4 weeks --- meaning 1HCY11 wafer fab equipment trends are tracking similarly to 2HCY10. So we view this announcement as not indicative of weakness at others and expect SPE companies to reiterate this view at a competitor's conference in NY next week.

"Our top picks in the front-end remain ASML, Lam Research, Varian, and Applied Materials. In sub-system, MKS Instruments and Advanced Energy remain favorites (recently upgraded in December). And finally, in the back-end, we continue to like Teradyne. If there is broad-based weakness for SPE shares post MTSN's print, we would be adding to positions."