You can no longer ignore the accelerating growth in the mobile market…If you have been following me here in the Sleuth for awhile you already know that I think one of the best ways to profit from this growth is through small semiconductor companies. But if you have been following this technology, you also know it has been a rough month for this sector.A number of semiconductor companies have already reported earnings so far this quarter. The general gist is that temporary weakness is holding the sector down in the second quarter of the year.This has put some downward pressure on share prices over the past month since the run-up from last December’s lows. Apple’s record earnings report, however, snapped the losing streak this week, at least temporarily.
The general consensus, however, is that things will pick up toward the second half of the year. This is generally a busier period of the year for the semiconductor sector, as new consumer electronics are released for the holiday season.Furthermore, ongoing resolution of the hard drive shortage — caused by last year’s flooding in Thailand — will provide a tail wind for many companies. Among other tech companies, the current weakness is affecting TriQuint Semiconductor (Nasdaq: TNT). Although the company reported above expectations for the first quarter, it gave lowered guidance for the second quarter. This is largely due to a slowdown from its largest customer…You see, TriQuint is a major supplier of RF components for Apple and that Apple guided a weaker second quarter.
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