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 two semiconductor stocks would your recommend as bets for investors in the second half of 2013?
Mr. Ing: I think long term, wireless is still really one of the greatest secular growth trends. There should be about one billion 3G, 4G devices sold this year. I think in five years that number could increase to 2 billion. And it's a mixture of smartphones, tablets and new classes of devices like wristwatches.
There are other applications for wireless, like in an automobile. There are going to be several wireless radios for entertainment and safety, these are machine-to-machine applications. In particular, I would focus on Skyworks here. It has very compressed valuations trending at about 10 times earnings.
There are some overdone near-term concerns on Apple exposure, as well as their partner Qualcomm becoming more of a competitor. Skyworks remains a top-two supplier of what's called RFICs in handsets, and RF again does all the heavy lifting in these phones as they support things like LTE and some of the new radio complexity.
And then also I would say Qualcomm, that's one of our top picks also. They sell both chipsets as well as collect royalties on all 3G, 4G smartphones that are being sold. I think the opportunity is still being underestimated. The royalties they collect are based on device ASPs for these handsets, and I think there is still a lot of support for very high device ASPs in these flagship smartphones.
There are a lot of new features being added onto phones. This year we're looking at things like mobile payments, including fingerprint-sensing hardware; we're looking at HD Wi-Fi, a new generation of Wi-Fi being added. Next year, I think there is going to be wireless charging on these phones that adds about $2, $3 of content, adding closer to $5-plus on the ASP side. So, I think...
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.