Thursday, September 9, 2010

A Tale Of Two Cities In The Chip Space?

Is it the best of times or the worst of times in semiconductors? It depends on who you ask. Following about two weeks after Intel's (Nasdaq:INTC) downward revision in guidance, Altera (Nasdaq:ALTR) and Silicon Labs (Nasdaq:SLAB) came out with very different outlooks on the current quarter. Looking through it all, it seems like the buzzword these days is "location, location, location" - some markets are still relatively healthy, while others have clearly weakened in the past few weeks. 

Altera Brings the Good News
Altera, a leader in the programmable logic device market with Xilinx (Nasdaq:XLNX), significantly boosted revenue guidance for the current quarter. Instead of the 4-8% sequential revenue growth that management originally projected, the figure is now in a range of 10-14%. While the company said that there was broad strength across all categories, it seems like the wireless infrastructure market is a particular area of momentum right now. Companies like Verizon (NYSE:VZ) and AT&T (NYSE:T) continue to develop 3G networks in the U.S., while foreign companies too are building more capacity for their networks. 



The full piece can be found at the link below:
http://stocks.investopedia.com/stock-analysis/2010/A-Tale-Of-Two-Cities-In-The-Chip-Space-ALTR-SLAB-INTC-XLNX-AAPL-LLTC-TXN0909.aspx

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