Replies to post #265054 on Zeev's Turnips Patch-No Politics (ZEEV)

[gottfried]

Culmus, Fitzgerald doesn't think so. what's in it for him?

Thanks to Nancy for the note below...

Reuters
May Semiconductor Sales Rise 37 Percent
Friday July 2, 10:49 am ET
By Daniel Sorid
SAN FRANCISCO (Reuters) - Worldwide sales of semiconductors jumped 36.9 percent to $17.32 billion in May to their highest level since December 2000, the Semiconductor Industry Association said on Friday.

Memory and cellular phone chips were especially strong in the month, though analysts said it appeared that industry sales growth could slow in the months ahead.

"We believe the best of the cycle has passed," Glen Yeung, an analyst with Citigroup Smith Barney, wrote in a note to clients.

In morning trade semiconductor shares fell broadly, with the Philadelphia Stock Exchange Semiconductor index down 2.2 percent.

The industry association, which represents U.S. semiconductor companies, said industry fundamentals still look good and that it expects strong growth through the rest of 2004.

The May results were up 2.1 percent compared with April's $16.97 billion in sales. The group said an increase is normal for May, as it is traditionally one of the stronger months for semiconductor sales.

Yeung said sales of microprocessors, the central chip in personal computers, were relatively weak in May. Intel Corp. (NasdaqNM:INTC - News), the world's largest chip maker, derives much of its revenue from the sale of microprocessors.

Microprocessor sales fell 5 percent from April. From a year earlier, sales grew 21 percent, but that was slower than the 25 percent year-over-year uptick in April, Yeung said.

Memory was the best performing segment in May, growing 73 percent year-over-year on firmer pricing.

Mark FitzGerald, an analyst with Banc of America Securities (News - Websites) , said the data nonetheless "confirms a peak" in the industry cycle, which could cut the industry's plans to buy semiconductor production equipment.

"Declining momentum suggests that positive revenue and earnings revisions for semi-equipment stocks will drop off sharply this quarter," FitzGerald wrote in a note to clients.