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: Intel Corporation (INTC), LSI Corporation (LSI), Exar Corp. (EXAR), Broadcom Corp. (BRCM), Skyworks Solutions Inc. (SWKS), Altera Corp. (ALTR), Xilinx Inc. (XLNX), SanDisk Corp. (SNDK), Marvell Technology Group Ltd. (MRVL), Seagate Technology (STX), Western Digital Corp. (WDC)
In the following excerpt from the Semiconductors Report, an expert analyst discusses the outlook for the sector for investors:
TWST: You think that NAND and HDD vendors could both win simultaneously. What are the factors that are creating opportunities on both fronts?
Mr. Freedman: Looking at the individual sectors of semis, you're touching on one of the points that we have talked to investors about quite a bit recently, and that is when I look at semis in total, there are three real areas of investment. I believe that we have the computing sector that everybody knows about, which is really dominated by Intel (INTC); then there is what I would call networking, where we move data around; and then there is what we do with the data.
That data you just mentioned is the storage sector where myself and the IT hardware analyst here at RBC are both incredibly bullish on the fact that we as an industry or a global economy continue to create an ever-increasing exponential growth in data, and that really creates a challenge for the ecosystem of which semiconductors play a role. How do we support that data? What do we do with it once we have it?
We have to transport it, so I'm very bullish on the networking side of the equation, and then we have to store it, and that storage takes place in two different types of media. One is disk drives. The other is now emerging; one is NAND as a source of ongoing, what we call non-volatile, which is memory that stays with us and is persistent. So there's tremendous growth opportunity for what we do with this data, and that data is such a big number and is growing at such a rapid rate that neither the hard drive nor the memory industry and semiconductor memory industry can keep pace with it.
As a result, we think the way in which we deal with that data is going to drive the value of the products that both the hard drive manufacturers make and the value of the products that we sell into the memory market.
TWST: What's your outlook for M&A in the sector? What are the factors that might spur consolidation, and what kinds of transactions could we see?
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.