Semiconductor Growth in China LTE Buildout and the Memory Side: A Wall Street Transcript Interview with Doug Freedman, Research Analyst at RBC Capital Markets

Wall Street Transcript

67 WALL STREET, New York - October 11, 2013 - 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: Cloud Computing - Mobile Device Consumer Demand - Enterprise Data Storage Demand - Energy Efficiency, Cloud Computing and Telecommunications

Companies include: Marvell Technology Group Ltd. (MRVL), Google Inc. (GOOG), Micron Technology Inc. (MU), SanDisk Corp. (SNDK), Altera Corp. (ALTR), QUALCOMM Inc. (QCOM), Semtech Corp. (SMTC)

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

TWST: When we spoke at the beginning of the year, you said you expected the communications market to improve in the second half of the year. Has that come to fruition?

Mr. Freedman: As a matter of fact, I would say late in Q2, we heard that the buildout in China was taking longer to take place than previously expected and was delayed by, I guess I'd call it about a quarter, maybe a little bit longer than that. We are now picking up that there is some demand presently coming out of China, but the official awards of actual allocation of base stations has not yet been fully authorized.

TWST: Which customers, products and end markets do you most want to see semiconductor companies exposed to right now and why?

Mr. Freedman: We do continue to favor companies that have exposure to the LTE market, specifically the China market. The other sector of the market that we continue to like is the memory side of the market, largely on the fact that manufacturers in this segment of the market are taking a completely new approach to the way in which they attack the business.

I guess I would focus in first on the comm equipment and the LTE buildout. Our favorite name there is Avago (AVGO). All three segments of their business are exposed to the buildout of LTE networks. They recently reported results that exceeded expectations, largely due to the fact that they are seeing all of the segments of their business perform at or better than expected.

Another name that I would bring to your attention is our top pick - is on Marvell (MRVL). They are exposed to the LTE buildout via the handset side of the business, as they provide base bands and combo chips to the handset market...

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.

View Comments (0)