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Following a visit to Taiwan to research the semiconductor supply chain, Canaccord Genuity technology analyst Bobby Burleson turned bullish on Advanced Micro Devices and NVIDIA Corporation.
Mr. Burleson said, “We would be buyers of AMD and NVIDIA as share gains may offset flat PC trends.”
“While negative data points are likely to persist for PCs and analog integrated circuits (ICs), a recovery for fabless IC and handsets appears to be underway, and there are several high quality analog names trading at attractive valuations.”
While in Taiwan, Burleson met with 19 companies in the electronics supply chain. “We saw a mixed environment for semiconductors and related components.” He said customers of foundries are providing better wafer forecasts into the fourth quarter, while analog IC suppliers appear to be in the midst of an inventory correction that could last through the remainder of 2011.
By end market Mr. Burleson said, PCs are weakest versus an apparent rebound for feature phones including Nokia suppliers. Smartphone demand is mixed as the Apple supply chain ships production volumes for a looming iPhone 5 launch, and Android suppliers see some weaker than expected demand for original equipment manufacturers competing with the Samsung S2.
Mr. Burleson reiterated BUY rating on Advanced Micro Devices and NVIDIA Corporation.