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Excerpt from our One Page Barron's Summary (receive it weekly by email by signing up here):

Integrated Device Technology by Michael Santoli

Highlighted companies: Integrated Device Technology Inc. (NASDAQ:IDTI), Cypress Semiconductor Corp. (NASDAQ:CY)
Summary: Cypress Semiconductor Corp. (CY) recently revealed it was reviewing its strategic options, presumably including a sale; shares went from $17 to $20. Last week it abruptly said it would no longer consider selling itself; shares retreated. (Not all buyout speculation is profitable.) Integrated Drive Tech Cypress Semi Comparison 1 year daily chartCypress' closest competitor in memory and communications chips is Integrated Device Technology Inc. (IDTI), which boasts a $3B market cap and a "wildly successful restructuring and merger-integration," having recently acquired Integrated Circuit Systems. IDTI stock is up from $11 in November '05 to its present $14.81. In November (Barron's plugged it first then), earnings were $0.71; the present forecast is $1.03, and some say they will come in as high as $1.20, with continuing upside. Shares are at 12x P/E. And one of the merger benefits -- pushing ICS chip production through IDTI's spare plants, haven't even kicked in yet.
Quick comment: ETFs with IDTI as a top-10 holding: SPDR Semiconductor (NYSEARCA:XSD). ETFs with CY as a top-10 holding: SPDR Semiconductor (XSD), PowerShares WilderHill Clean Energy ETF (NYSEARCA:PBW)

Source: Integrated Device Technology: Shares Could Rise as Cypress Semi Stumbles -- Barron's