Needham makes a bearish call
on chip equipment stocks, and is downgrading Applied Materials (AMAT +0.1%
), Ultra Clean Holdings (UCTT -4.3%
), and Nova Measuring (NVMI -2.9%
) in the process. The firm thinks order rates from major chip manufacturers are decelerating, and is less confident memory capex (ed: no doubt affected by Elpida's bankruptcy
and falling flash prices
) will rebound in the near-term. Thus, it thinks the Street's growth forecasts are too high.