Wedbush Morgan sees chip industry 'upsurge' ($SOX) by Tomi Kilgore
Analyst David Wu at Wedbush Morgan said recent data suggests there will be a "very sharp cyclical upsurge" in the semiconductor and semiconductor equipment industries sometime in 2003 and a "boom" in 2004. Wu currently expects industry growth of 13 percent in 2003 and 25 percent in 2004, but feels there is risk his estimates are too low, given the recent under-investing in capacity and "surprisingly strong" unit demand in the third quarter. Meanwhile, the Phlx Semiconductor Index ($SOX) is down 2.7 percent. Merrill Lynch had downgraded a number of chip stocks, citing an "unappealing" reward versus risk ratio for the sector.
mitglied.lycos.de/ArbeiterX/Dr1.jpg" style="max-width:560px" >
