Analog Semis: ThinkEquity Says Fundamentals Are Improving

Robert Burleson, an analyst with ThinkEquity Partners, Thursday morning pounded the table on the analog sector, noting that “fundamentals are improving against a backdrop of upside demand from the computing and consumer markets and some shortages at distributors in Asia Pacific.”

Burleson adds that conversations with distributors in China find them “showing increasing concern regarding component availability, increasing lead times and firming-to-improving prices for analog and discrete parts.” He says foundries, assembly and test and ODMs “corroborate that this strength is demand-driven, not just replenishment at distributors.”

Burleson advises investors buy Intersil (ISIL) and Maxim (MXIM); he also likes ON Semi (ONNN) and Texas Instruments (TXN) “on weakness,” and says that Fairchild (FCS) “is likely to benefit as well.”