Strong Demand in the Wireless Device Space: Expert Analyst Ian Ing Discusses His Top Picks in the Sector Best Exposed to End Markets

Wall Street Transcript

67 WALL STREET, New York - May 24, 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 and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Semiconductor Capital Equipment - Cloud Computing, Mobile Device Consumer Demand - Semiconductor Inventory Burnoff - Improvement from Cyclical Bottom - Semiconductor Capital Equipment Spending - New Computing Platform Demand

Companies include: QUALCOMM Inc. (QCOM), Skyworks Solutions Inc. (SWKS), Xilinx Inc. (XLNX), Altera Corp. (ALTR), Finisar Corp. (FNSR), JDS Uniphase Corp. (JDSU), RF Micro Devices Inc. (RFMD), Semtech Corp. (SMTC), Lattice Semiconductor Corporat (LSCC), Apple Inc. (AAPL), Microsoft Corporation (MSFT), Amazon.com Inc. (AMZN), AT&T, Inc. (T), Verizon Communications Inc. (VZ), Atmel Corp. (ATML), ON Semiconductor Corp. (ONNN), RF Micro Devices Inc. (RFMD), TriQuint Semiconductor, Inc. (TQNT) and many more.

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

TWST: Which end markets are exhibiting the strongest demand?

Mr. Ing: We're still pretty positive on the wireless device space. So we're in a bit of a product cycle pause in the first half. There are some stale products out there and not a lot of refreshes yet, but for the full year we're pretty optimistic on the wireless opportunity. Especially when you look at the second half, I think nearly all the OEMs have some really compelling devices coming in terms of smartphones and tablets, even new classes of devices like wristwatches.

Our coverage is exposed to the sharpest areas of growth, things like flagship LTE smartphones with a lot of new features and a lot higher data rates. Also, in the low end we're talking about, in places like China, about 700 to 800 million feature phones largely switch over to low-end 3G phones due to narrowing ASP differences, so there are a lot of positive content trends for a lot of these handset players.

Longer term, we think wireless applications for connected home and machine-to-machine applications, M2M, will layer on additional revenue streams and may one day rival the unit opportunity of handsets and tablets.

TWST: What are the companies that have the best exposure to the end markets that you've just mentioned?

Mr. Ing: I would say companies like Skyworks, RFMD (RFMD), Avago and Qualcomm as well as some of the smaller players. There are companies like Semtech (SMTC) and Lattice Semiconductor (LSCC) that have favorable exposure there also.

The other trend that's happening, I would say, is sort of these larger-scale data center deployments, companies like an Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), etc., really the power consumption is a driving factor in these data center buildouts...

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)