ser positivt ud for semi eq, hvor jeg stadig har nogle poster og nok vil købe
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Intel's Capital Spending to Boost Semiconductor Equipment Makers 1 comment '
by: Bubble Bust Investing.com July 21, 2011 ' includes: AMAT, INTC, KLAC,
KLIC, NVLS, TER, TSM Font Size: PrintEmail Recommend 0 Share this page
Share0 inShare0Investors who have been looking for a confirmation of the
semiconductor industry rebound got it from Intel (INTC) on Wednesday afternoon
as the company reported second quarter results that beat analysts' estimates on
both the top and bottom lines.
Intel's results further suggest that Novellus' (NVLS) disappointing guidance
last week was more company-specific than an industry-wide issue. But what should
cheer investors the most is Intel's announcement to up its capital spending by
$500 billion, confirming the company's previous plans to increase capital
spending by 73% to $9 billion in 2011. When put together with a similar
announcement of another semiconductor company, Taiwan Semiconductor (TSM), to up
capital spending by 30 percent to $7.8 billion, Intel's announcement should be
music to the ears of semiconductor equipment makers that have been threading
water for almost a decade.
Semiconductor equipment leaders like Applied Materials (AMAT) have been trading
40 percent below their 2000 high (adjusted for a 2002 stock split), Teradyne
(TER) near 80 percent, Novellus Systems 40 percent, and KLA-Tencor (KLAC) 35
percent; and they all command low PEs, in the single to low-teen digits.
Company
Recent Price
Forward PE
Applied Materials
$12.88
10.81
KLA-Tencor
42.68
10.64
Kulicke and Sofa Industries (KLIC)
9.88
6.32
Novellus Systems
32.46
10.12
Teradyne
14.10
9.04
Lam Research (LRCX)
42.96
10.09
The semiconductor industry's rebound is further confirmed by a Gartner report
showing that semiconductor equipment spending grew by 131 percent in 2010.
Rising semiconductor equipment spending is further supported by industry
fundamentals:
Tight capacity. The capacity utilization rate among semiconductor producers is
over 90%, a level that typically results in large increases in capital spending.
A replacement cycle and new manufacturing technology. Most semiconductor making
equipment is 10 years old, too long for an industry in the forefront of
innovation. A move toward 22-nanometer technology will drive industry-wide
growth.
New product cycle. The IT industry is in the middle of a new revolution
propelled by handheld devices like smart phones and iPads (AAPL) that require a
new generation of semiconductors, especially in flash memory devices, that must
be produced with new equipment. Companies like AMAT that have branched out into
solar energy may further benefit from the surge in alternative energy
technologies.
Favorable US tax legislation is expected to accelerate IT capital spending, and
tip the balance between old and new equipment.
Binding entry barriers make the industry an oligopoly that allows major players
to maintain pricing power.
Patience should eventually pay off for investors in semiconductor industry.
flere senere på året når lageropbygningen til julehandelen tager fart
Intel's Capital Spending to Boost Semiconductor Equipment Makers 1 comment '
by: Bubble Bust Investing.com July 21, 2011 ' includes: AMAT, INTC, KLAC,
KLIC, NVLS, TER, TSM Font Size: PrintEmail Recommend 0 Share this page
Share0 inShare0Investors who have been looking for a confirmation of the
semiconductor industry rebound got it from Intel (INTC) on Wednesday afternoon
as the company reported second quarter results that beat analysts' estimates on
both the top and bottom lines.
Intel's results further suggest that Novellus' (NVLS) disappointing guidance
last week was more company-specific than an industry-wide issue. But what should
cheer investors the most is Intel's announcement to up its capital spending by
$500 billion, confirming the company's previous plans to increase capital
spending by 73% to $9 billion in 2011. When put together with a similar
announcement of another semiconductor company, Taiwan Semiconductor (TSM), to up
capital spending by 30 percent to $7.8 billion, Intel's announcement should be
music to the ears of semiconductor equipment makers that have been threading
water for almost a decade.
Semiconductor equipment leaders like Applied Materials (AMAT) have been trading
40 percent below their 2000 high (adjusted for a 2002 stock split), Teradyne
(TER) near 80 percent, Novellus Systems 40 percent, and KLA-Tencor (KLAC) 35
percent; and they all command low PEs, in the single to low-teen digits.
Company
Recent Price
Forward PE
Applied Materials
$12.88
10.81
KLA-Tencor
42.68
10.64
Kulicke and Sofa Industries (KLIC)
9.88
6.32
Novellus Systems
32.46
10.12
Teradyne
14.10
9.04
Lam Research (LRCX)
42.96
10.09
The semiconductor industry's rebound is further confirmed by a Gartner report
showing that semiconductor equipment spending grew by 131 percent in 2010.
Rising semiconductor equipment spending is further supported by industry
fundamentals:
Tight capacity. The capacity utilization rate among semiconductor producers is
over 90%, a level that typically results in large increases in capital spending.
A replacement cycle and new manufacturing technology. Most semiconductor making
equipment is 10 years old, too long for an industry in the forefront of
innovation. A move toward 22-nanometer technology will drive industry-wide
growth.
New product cycle. The IT industry is in the middle of a new revolution
propelled by handheld devices like smart phones and iPads (AAPL) that require a
new generation of semiconductors, especially in flash memory devices, that must
be produced with new equipment. Companies like AMAT that have branched out into
solar energy may further benefit from the surge in alternative energy
technologies.
Favorable US tax legislation is expected to accelerate IT capital spending, and
tip the balance between old and new equipment.
Binding entry barriers make the industry an oligopoly that allows major players
to maintain pricing power.
Patience should eventually pay off for investors in semiconductor industry.
