Semis Steady Despite Negative Note From ABN Amro

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Semiconductor stocks were shrugging off negative comments from ABN Amro. Advanced Micro Devices (AMD) - Get Report was up 0.9% and STM Microelectronics (STM) - Get Report was up 4.1%.

ABN Amro cut its forecast for the global semiconductor industry and semiconductor equipment suppliers, pointing to weak economic conditions. ABN Amro said it now sees semiconductor makers' revenue falling 31% in 2001 from a previous forecast of a 29% decline, while revenue in 2002 will grow by 9% from a previous estimate of 15%.

ABN Amro also cut its estimate for capital spending by the telecom sector to a drop of 27% from a drop of 10%.

The brokerage also trimmed its estimates on Agere Systems and Lattice Semiconductor (LSCC) - Get Report. It cut Agere's price target to $6 from $9.50 and Lattice to $20 from $30.

Agere and Lattice were unchanged.