Prudential Uses Intel Guidance to Upgrade Seven Chipmakers
Prudential Securities analyst Hans Mosesmann upgraded seven semiconductor companies this morning after
(INTC) preached about stability in the PC business -- a good thing for the company's line of Pentium chips.
However, the company also said second-quarter revenue will come in just below the midpoint of its projected range, providing yet another example of a giant with a shrinking top line. The news wasn't devastating. In fact,
And even though Intel doesn't give forward guidance about its earnings, Mosesmann took the fact that the company didn't lower its revenue targets as a green light for investors.
The Prudential analyst upgraded Altera,
(ATML - Get Report),
(LSCC - Get Report) (which warned last night),
(PSEM - Get Report) and
(STM) to buy from hold, using Intel's notion that PC demand has reached stability as a main reason why these companies should be bought now. Mosesmann, as he did
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Today's upgrade intensifies and highlights the debate over semiconductor stocks and Intel's assertion that the PC demand's weakness is no longer due to an industry wide recession, but because of seasonality. One camp, led by Goldman Sachs' Jonathan Joseph, argues that the bottom is at hand. Another, led by Merrill's Osha,
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