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PowerShares Dynamic Semiconductors Portfolio ETF (PSI)

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  • Dec. 21, 2012, 4:15 PM
    O2Micro (OIIM) warns it expects Q4 revenue of $16M-$17M, below prior guidance of $17M-$20M and a consensus of $18.6M. The company, no stranger to warnings, blames "broad-based weakness in demand in our end markets, coupled with lower than normal inventories being held in the supply chain." At least a few other chipmakers have similar problems. Shares are likely to fall after rising 8% in regular trading. (PR)
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  • Dec. 13, 2012, 6:52 PM
    Freescale (FSL) CEO Gregg Lowe says he doesn't see any evidence global chip sales will soon rebound, even though Q4 is set to be the 6th straight quarter of Y/Y shipment declines. Gartner is slightly more positive, forecasting industry sales will rise 4.5% in 2013 after falling 3% in 2012. Rising NAND flash memory and ASIC sales, fueled by respective 33% and 38.5% increases in smartphone and tablet shipments, are expected to drive the increase, even as PC sales remain weak.
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  • Dec. 11, 2012, 12:48 PM
    Texas Instruments (TXN +3.8%) is up after providing a guidance update that's being received favorably in light of industry and company-specific issues. During its update call, TI noted the wireless processor/connectivity business it's exiting will post a Q4 loss on revenue of ~$200M, and that those sales should be gone by 2014. Computing, industrial, and telecom infrastructure chip demand is also weak, though console and e-reader demand is healthy - that last bit could be a positive for AMZN and BKS. Chip stocks are outperforming (SOXX +2%). (Audi deal)
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  • Nov. 26, 2012, 8:13 AM
    Chip stocks are receiving some sell-side love this morning. 1) Benchmark has raised its rating for the sector to Overweight, citing reasonable inventories and low expectations. 2) Anadigics (ANAD) has received an upgrade to Buy from Needham; the firm says it's now less worried about the chipmaker's cash position, and is encouraged by survey results for its new single-chip Wi-Fi front-end ICs. 3) Pac Crest is launching coverage on Silicon Labs (SLAB) with an Outperform and $48 PT.
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  • Nov. 9, 2012, 4:42 PM
    It pays for chip companies to have good mobile exposure these days. TSMC (TSM +1.4%), the top foundry for Qualcomm, OmniVision, Broadcom, and other mobile chip names, reported its October sales rose 15% M/M and 32% Y/Y to $1.7B, boosted by growing 28nm chip production. Rival UMC, by comparison, only saw 12% Y/Y growth. Credit Suisse now thinks TSMC should be able to hit the high end of its Q4 revenue guidance range thanks to smartphone-related orders.
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  • Nov. 9, 2012, 10:34 AM
    Analog chipmakers Diodes (DIOD -7%) and Microsemi (MSCC -5%) are heading south following their Q3 reports (I, II). Though Diodes' Q4 revenue guidance ($160M-$167M vs. $164M consensus) was in-line, its gross margin forecast of 23%-27% is underwhelming, given the midpoint is below Q3's 26.2%. Microsemi is guiding for Q4 revenue of $262M-$268M and EPS of $0.57-$0.60, mostly below a consensus of $268.1M and $0.60. The chip industry remains mired in a slump. (Diodes PR) (Microsemi PR)
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  • Nov. 6, 2012, 7:07 PM
    Global chip sales rose 2% M/M but fell 3.9% Y/Y in September, according to the SIA. For the whole of the Q3, sales rose 1.8% M/M and fell 4.7% Y/Y. Q3 results/guidance from Intel, Altera, Texas Instruments, and others made it clear the industry's demand issues are broad-based. Qualcomm's FQ4 report tomorrow should help shine a light on how mobile (a relative strong point) is faring. (tables - PDF)
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  • Oct. 24, 2012, 2:53 PM
    While Facebook leads an Internet stock rally, chip stocks have sold off over the course of the day (SOXX -1.3%). Broadcom (BRCM -2.9%) and Altera's (ALTR -8%) guidance (I, II) is taking a toll, and the Street might also be concerned about the implications of EMC and Juniper's guidance. During its earnings call, Broadcom said it expected its networking/wireline infrastructure chip sales to be weak in Q4, due to both soft enterprise and service provider spending.
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  • Oct. 23, 2012, 1:24 PM
    Chip stocks are outperforming a little following ARM's (ARMH +11.6%) pleasing Q3 report (I, II), in which the company reported a 16% Y/Y increase in Q2 unit shipments (from which Q3 royalties were derived). Beaten-down PC chip stocks are among the winners: AMD +3.8%. NVDA +2.9%. INTC +1.1%. Earlier today, AMD launched its Vishera desktop CPU line - AMD is counting on the 4 and 8-core CPUs, which are priced aggressively, to help reverse share losses to Intel's Ivy Bridge. Reviewers offer tempered praise.
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  • Oct. 22, 2012, 6:44 PM
    Texas Instruments' Q3 call didn't contain much for chip stock investors to be excited about. The analog chip giant claims customer inventories remain lean and demand visibility short; that the industrial and telecom markets are soft; and that September was the weakest month in the quarter. Also, wireless sales are expected to underperform again on a Q/Q basis, a likely sign Amazon is paring back Kindle Fire-related orders after building inventories in Q3. TXN -0.3% AH. (Q3 results: I, II)
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  • Oct. 10, 2012, 9:48 AM
    Avnet (AVT -9.6%) tumbles to 52-week lows after warning it expects FQ1 (Sep. quarter) revenue of $5.85B and EPS of $0.52-$0.58, below a consensus of $6.06B and $0.83. The company blames the impact of delayed IT projects on its hardware distribution ops, and a "pronounced slowdown" in Americas sales for its chip distribution ops. Given Avenet's bellwether status for chip demand, which is already looking shaky, the warning is likely contributing to early weakness in chip stocks (SOXX -0.9%). Rival Arrow (ARW -6.2%) is also selling off.
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  • Oct. 8, 2012, 12:59 PM
    ISI's Sumit Dhanda downgrades his rating for the chip industry to Neutral, while also downgrading analog chipmakers Texas Instruments (TXN -0.5%), Linear Tech (LLTC -0.7%), Analog Devices (ADI -0.7%), Power Integrations (POWI -3.5%), and Intersil (ISIL -7.3%) in particular.  Dhanda, whose move follows a selloff in chip stocks thanks to negative data (I, II), thinks macro issues could lead industry sales to fall 2% in 2013. JPMorgan has also downgraded Intersil, citing PC weakness, share loss, and a possible dividend cut. (previous)
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  • Oct. 3, 2012, 4:18 PM
    Analog/security chipmaker O2Micro (OIIM) warns it expects Q3 revenue of $22M-$23.1M, below prior guidance of $24.1M-$26M and a consensus of $24.8M. The company blames "broad-based weakness in demand in the company's end markets," and claims customers are working through excess inventory. Chalk this up as another negative datapoint for the chip industry. (SIA data) (FBR)
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  • Oct. 2, 2012, 7:05 PM
    Though the chip industry's inventory correction technically ended this spring, global chip sales fell 3.2% Y.Y in August and were nearly flat M/M, the SIA estimates. Weak PC, TV, and telecom equipment sales have easily offset healthy mobile device demand. Chip stock valuations have compressed some over the last 3 weeks, but remain above last fall's lows. (FBR comments) (historical chart - PDF)
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  • Oct. 2, 2012, 1:18 PM
    FBR's Craig Berger, who made a bearish call on chip stocks in July, is reiterating his stance. China and Europe's macro issues, U.S. budget worries, soft PC demand, and slumping auto production are all named as concerns. Berger views ATML and sell-side whipping boy AMD as the "most risky" names in the space, but considers QCOM, BRCM, and MXIM relatively insulated thanks to their Apple/Samsung exposure. Chip stocks rallied for much of the summer, but have lately corrected.
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  • Sep. 28, 2012, 6:45 PM
    Apple may now account for a decent chunk of chip industry sales, but its growth is very much a mixed blessing for the industry, argues Piper's Gus Richard. Apple often demands "onerous terms" from its suppliers, Richard points out, and Samsung's (SSNLF.PK) flash memory profits are actually improving following Apple's decision to shift orders to other suppliers. In addition, the iPad's chip content value is well below that of the PCs it's cannibalizing. (also)
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PSI Description
The PowerShares Dynamic Semiconductors Portfolio (Fund) is based on the Dynamic Semiconductors Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
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Sector: Technology
Country: United States
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