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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