Our Chip Stocks
This is why I like chip stocks:
"The Semiconductor Industry Association said chip sales rose to $19.7 billion in May, 9.4% higher than last year and 0.7% higher than in April. Driving growth were sales of cellphones and other consumer electronics devices. Sales of analog chips grew 21.5% from the previous year, while digital signal processor sales grew 13.7%. The association added that sales of DRAM computer memory chips rose 13.7%, but PC-microprocessor sales fell 2% due to excess inventory"
ISIL is an analog chip company. They are willing to take a lower margin for the business, and that model is working.
RFMD was our foray into cell phones, but the idea that they missed Nokia sales is scary.
ZRAN as well as TRID are chip stocks.
What is most fascinating to me is that we have sequential growth in sales from April to May and strong Y/Y growth. Considering the expected PC slowdown and iPod sales slowdown, this is very good to see. The bulk of the chip sales are commodity chips like DRAM and Flash memory and such. Those chips are falling in price. In order for total sales to be up, the price of other non-commodity chips must be soaring.
This is why I am bullish on chip stocks. Pundits expecting a slowdown in consumer spending are being contradicted by consumer spending in the retail markets, consumer financing of spending remaining strong, and strong demand for components. Semiconductors are not just-in-time components but close to it. This demand reflects real, near term demand for end products. And that's a good sign.
"The Semiconductor Industry Association said chip sales rose to $19.7 billion in May, 9.4% higher than last year and 0.7% higher than in April. Driving growth were sales of cellphones and other consumer electronics devices. Sales of analog chips grew 21.5% from the previous year, while digital signal processor sales grew 13.7%. The association added that sales of DRAM computer memory chips rose 13.7%, but PC-microprocessor sales fell 2% due to excess inventory"
ISIL is an analog chip company. They are willing to take a lower margin for the business, and that model is working.
RFMD was our foray into cell phones, but the idea that they missed Nokia sales is scary.
ZRAN as well as TRID are chip stocks.
What is most fascinating to me is that we have sequential growth in sales from April to May and strong Y/Y growth. Considering the expected PC slowdown and iPod sales slowdown, this is very good to see. The bulk of the chip sales are commodity chips like DRAM and Flash memory and such. Those chips are falling in price. In order for total sales to be up, the price of other non-commodity chips must be soaring.
This is why I am bullish on chip stocks. Pundits expecting a slowdown in consumer spending are being contradicted by consumer spending in the retail markets, consumer financing of spending remaining strong, and strong demand for components. Semiconductors are not just-in-time components but close to it. This demand reflects real, near term demand for end products. And that's a good sign.
posted by Andrew at
2:10 PM
3 Comments:
One more TRID downgrade today, maybe now it has reached the bottom.
One more downgrade for TRID today. Almost 50% down from the high, maybe time to get some options now.
whats your take on trid, there have been downgrades for other stocks too,but TRID took a hefty blow down 16%
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