While confusion surrounding the exact time at which the semiconductor cycle peaked has caused a skittish supply chain for many semis, those with a clear-cut competitive advantage have side-stepped much of the mayhem, said Raymond James Analyst Hans Mosesmann.
“There are companies that are in control over their destinies either because they have some kind of a product that is unique or some kind of competitive advantage,” Mosesmann said. “Or because they’re part of a cycle where they have a product that is ideally suited for that kind of cycle.”
Mosesmann focuses on companies like Micron Technology (MU), NVIDIA (NVDA) and his top pick Altera (ALTR), which he says is a successful secular trend story.
“Altera produces chips that are called programmable logic devices, which allow customers to program their intellectual property or their design into these chips. It’s becoming a pervasive product in all kinds of electronics,” Mosesmann said. He adds that for semis, “It’s more of a stock-to-watch dynamic rather than a sector dynamic, particularly when investors are very skittish from a macro perspective, and it doesn’t seem like that’s going to end any time soon.”
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