NEW YORK (TheStreet) -- It's been a year of ups and downs for shares of the semiconductor industry as disappointing fourth-quarter guidance curtailed a strong run-up mid-year. As the industry becomes increasingly crowded, which circuit makers come out on top and which are set to drop?
MKM Partners has revised its ratings on the semiconductor industry in a research report Monday, explaining:
"Our view on semiconductor end-markets continues to be most positive on data center exposure (a multi-year secular growth trend) followed by communications (on a growth trajectory despite lumpiness). Other end-markets face continued challenges, with little visibility on the timing of a material recovery."
For analog semiconductors Texas Instruments (TXN - Get Report) and Analog Devices (ADI - Get Report), MKM maintains its "neutral" rating with a price target of $41 and $33, respectively, on the view the companies operate in a "low-single-digit grow market".For Advanced Micro Devices (AMD - Get Report), MKM holds a "neutral" rating and a price target of $3, as its PC and CPU strength is threatened by Intel's (INTC) manufacturing dominance. MKM holds a more positive view of Maxim Integrated Products (MXIM - Get Report), upgrading the stock to a "buy" with a price target of $35, as the company is well-positioned in the smartphone and data center spaces. Formerly "buy"-rated, ON Semiconductor Corporation (ONNN) has been downgraded to "neutral" with an $8 price target, as its "highly diversified and manufacturing-heavy" model relies heavily on a global macroeconomic recovery. By mid-morning, Analog Devices had shed 0.22% to $50.58, Texas Instruments remained flat, Advanced Micro Devices climbed 0.43% to $3.52, Maxim was up 0.6% to $29.36 and ON Semiconductor plummeted 1.4% to $7.