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LED Backlit Outlook

|Includes:AIXG, CREE, RBCN, Veeco Instruments Inc. (VECO)

We talk about LED names (CREE, VECO, RBCN, and AIXG) on the desk everyday so I want to share some color that Digitimes released last week.

According to DIGITIMES Research, worldwide LED TV shipments will rerach 37.2 million units worldwide in 2010 and will account for 21.3% of the LCD TV market.  LED sets’ penetration in the LCD TV market has been enabled by chipmakers fast capacity expansion, as well as backlight unit (NYSE:BLU) makers aggressive switch to the new form of backlighting.  LED TV’s are expected to have a market share of 68% in 2012, surpassing CCFL sets.

We finally saw a bit of relative strength in CREE last week and I wanted to post this blog because I believe this note is why we saw the strength.  Two quarters ago CREE and the rest of LED related names were taken down because of softening LED backlit orders and this note is giving us clarity that the LED backlit story is still intact.

I like CREE for the larger story, general lighting, but this is a catalyst that could push CREE back up toward the $70 level it saw prior to the earning release.

Disclosure: none

Disclosure: none