Chip stocks under pressure

Marvell announced a miss in their earnings. I think that this might be significantly related to the Playstation 3 delay. In any event, they are down 15% and dragging down all other chip stocks.

To be clear: I am neutral on the chip sector but up on select stocks. In general, the chip sector is peaking. They are still growing and still operating at capacity, but they are hitting singles and not triples. However, certain niche players are still growing and they are doing it at the expense of the bigger players. ISIL is stealing share from its rivals by underpricing and outperforming. TRID has a headlock on flat panel & plasma chipsets.

UCTT is also getting hit (a good buy opportunity) in a sympathy move. UCTT's services are in strong demand and won't slow because they are part of cost containment and production efficiency. These systems are particularly important to give slowing companies that extra edge. And it trades at a simple 11x earnings.