Semiconductor analysts at last week's Churchill Club's 12th annual Semiconductor Outlook dinner insist that despite a soft outlook for the sector, there is money to be made by seeking out companies in good product cycles. Barron's Eric Savitz lets us in on the picks of some industry experts:
Christopher Danely of JPMorgan likes Microchip Technology (NASDAQ:MCHP), which stands to do well against rival "stiffs" STMicro (NYSE:STM) and Freescale (NYSE:FSL). AMD (NASDAQ:AMD), he says, "is trading as if it's going out of business," and could double from its present $7.43.
Mark Lipacis of Morgan Stanley calls PMC-Sierra (NASDAQ:PMCS) "a pure play on growth in communications infrastructure," which stands to gain by outstanding telco balance sheets. Texas Instruments (NASDAQ:TXN) is underloved.
Dan Niles of Neuberger Berman Technology Management continues to like handset chipmaker Skyworks Solutions (NASDAQ:SWKS), which is gaining market share at Nokia (NYSE:NOK), Research In Motion (RIMM) and others. Applied Materials (NASDAQ:AMAT) is a good bet on solar growth.
J.& W. Seligman portfolio manager Sangeeth Peruri thinks Marvell (NASDAQ:MRVL) will crush Street EPS estimates. ON Semiconductor (ONNN) is well positioned in the low-end analog chip industry.