Thursday, January 02, 2014 12:36:30 PM
Intel, Micron, Linear Lead Drexel’s Upbeat Economic Outlook
By Tiernan Ray
Drexel Hamilton‘s Richard Whittington today opines that with a rising global economy, “economically sensitive semiconductor names will continue coming to the fore,” among which he considers Intel (INTC), Linear Technology (LLTC), and Micron Technology (MU), all of which he rates at Buy, the chief beneficiaries.
Whittington cites a number of factors, including broad investment in infrastructure, low inventories in the chip world, and tight pricing for some components such as DRAM:
Chalking it up to monetary mumbo jumbo, nearly all have missed the fundamental facts on the ground: lean supply chains intersect rising confidence and historic low interest rates as the world demands technically advanced goods [...] Infrastructure-tied to developed economies the past decade, far more populated developing nations have been upping the take of increasingly electronics-denominated industrial and consumer goods while plugging into the Cloud [...] Derived demand for electronic components through increasingly opaque supply chains is now stressing the productive base as the foremost semiconductor commodity, main system memory, continues in acute undersupply [...] The precise opposite of what many have expected, first day of this new year spot trading has seen another surge in 2Gb PC DRAM prices, respective 5%-6% day-day gains, with minimally tested 4Gb densities rising nearly 2% [...] Articles citing stepped up component orders by Lenovo seeking to gain notebook, tablet and smartphone share as well as Taiwanese memory module suppliers citing ongoing tight market conditions, DRAM pricing remains upward biased [...] Tier one and smaller OEMs already locking up available supplies for the remainder of typically seasonally soft calendar Q1 at prices several percent above what they paid the prior period, spot channels have become thin and fragile [...] Still, the first order conclusion of what is to be publicly seen is that electronics OEMs are upping build rates above prior commitments, imparting new stress and strain on the installed productive base.
Whittington likes Intel, Micron and Linear as companies “solely relying on internally derived output” of chip manufacturing, and, hence “can avail of improving cyclical conditions.”
Intel shares are down 30 cents, or 1.2%, at $25.65, Micron shares are down 23 cents, or 1%, at $21.52, and Linear stock is down 73 cents, 1.6%, at $44.82.
Recent MU News
- Micron Expands SSD Portfolio With New Crucial P310 2280 Gen4 SSD, Bringing High-Octane Performance To Gamers and Creators • GlobeNewswire Inc. • 09/17/2024 01:00:00 PM
- Investors Anticipate Retail Sales Data and Fed Decision; Oil Prices Dip as Investors Weigh U.S. Production • IH Market News • 09/17/2024 10:42:43 AM
- Microsoft Boosts Share Buyback, Raises Dividends by 10%, Intel Secures Chip Deal with Amazon • IH Market News • 09/17/2024 10:40:35 AM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Micron to Report Fiscal Fourth Quarter and Full-Year 2024 Financial Results on September 25, 2024 • GlobeNewswire Inc. • 08/28/2024 08:01:00 PM
- Google Mandated to Modify Play Store, Apple Innovates, Victoria’s Secret Hires CEO, Mars Buys Kellanova • IH Market News • 08/15/2024 10:05:46 AM
- Google Forced to Modify Play Store, Apple Innovates, Victoria’s Secret Hires CEO, Mars Buys Kellanova • IH Market News • 08/15/2024 10:05:46 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/12/2024 10:31:17 PM
- Intel Sued by Shareholders; JPMorgan Raises Chance of Recession; Roblox Blocked in Turkey; Micron Resumes Share Buyback • IH Market News • 08/08/2024 09:48:43 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 12:45:51 PM
- Micron Develops Industry’s First PCIe Gen6 Data Center SSD for Ecosystem Enablement • GlobeNewswire Inc. • 08/05/2024 01:03:00 PM
- Micron Technology Announces Upcoming Investor Events • GlobeNewswire Inc. • 08/01/2024 08:01:00 PM
- Micron Announces Volume Production of Ninth-Generation NAND Flash Technology • GlobeNewswire Inc. • 07/30/2024 01:03:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/23/2024 10:29:44 PM
- Micron Introduces the World’s Fastest Data Center SSD • GlobeNewswire Inc. • 07/23/2024 01:01:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/19/2024 08:05:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:06:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:05:26 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:04:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:04:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:03:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:03:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:02:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 11:01:27 PM
- U.S. Stocks Close On Mixed Note; Dow Rises To New High, Nasdaq Tumbles • IH Market News • 07/17/2024 08:41:00 PM
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