Mobile Telephony Commoditization Begins to Pressure Semiconductor Stocks: A Wall Street Transcript Interview with Kevin Cassidy, Equity Research Analyst with Stifel, Nicolaus & Co., Inc.

June 4, 2014

67 WALL STREET, New York - June 4, 2014 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Mobile Device Consumer Demand - Enterprise Data Storage Demand - Energy Efficiency, Cloud Computing and Telecommunications - Improvement from Cyclical Bottom - Semiconductor Capital Equipment Spending - Data Growth Trends - Semiconductor Revenues and Demand - Chinese Fabless Industry Growth

Companies include: Microsoft Corporation (MSFT), Google Inc. (GOOG), Intel Corporation (INTC), NVIDIA Corporation (NVDA), Mellanox Technologies, Ltd. (MLNX), SanDisk Corp. (SNDK), Micron Technology Inc. (MU), AT&T, Inc. (T), Verizon Communications Inc. (VZ), Microchip Technology Inc. (MCHP), Micron Technology Inc. (MU), Synaptics Inc. (SYNA), Apple Inc. (AAPL)

In the following excerpt from the Semiconductors Report, an expert analyst discusses the outlook for the sector for investors:

WST: You expect to see an uptick in super computers and hybrid-scale data centers. What's driving that growth, and which companies could benefit from that trend?

Mr. Cassidy: A lot of that growth is coming from that move toward cloud services rather than small- to medium-sized companies having their own data centers and trying to manage all the software and the upgrades that goes along with it. They move to outsourcing their IT departments and moving to cloud services, and that would be coming from companies like Amazon (AMZN) or Microsoft (MSFT), Google (GOOG), Facebook (FB).

Their data centers are mega data centers; these are millions of servers in a few buildings needed to support all these cloud services users. So we see this as a trend, and we're recommending that as part of the product cycle as look at the companies that are addressing these cloud data centers or these mega- or hyper-scale data centers.

TWST: And so who would benefit from that trend?

Mr. Cassidy: In our coverage it's Intel (INTC), NVIDIA (NVDA), Mellanox (MLNX), and even SanDisk (SNDK) and Micron (MU) for all the memory that is going to be used in these mega data centers.

TWST: Which end markets would you rather not see the semiconductor companies exposed to right now?

Mr. Cassidy: We see a lot of changes happening in the mobile market, as the platforms seem to be getting standardized, and even as the carriers such as AT&T (T) and Verizon (VZ) that are less prone to subsidize high-end phones, we think the price pressure for this supply chain in the mobile market is increasing...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.