Cypress Semiconductor Corp. (CY) and NVIDIA Corp. (NVDA) Present Attractive Entry Point to Semiconductor Industry

September 28, 2012

Cypress Semiconductor Corp. (CY) is at a seasonal low, as the market is extremely bearish on the touch controller market where CY is significant player, making RBC Capital Markets Research Analyst Doug Freedman very comfortable recommending the stock, saying that CY has a lot of opportunity to benefit from a continued mobile revolution.

“The market is missing that as the handset production — new products are brought to market, new Kindles are brought to market, ultimately ultrabooks with touch enablement come to market. There is a lot of opportunity for [Cypress] to benefit from what I would call the continued mobile revolution,” Freedman said.

He adds that Cypress has SRAM product family, and that finally the “SRAM business will benefit from the com equipment end market as they continue to return to spending at what I would call more normalized rates.”

Freedman is also positive on NVIDIA Corp. (NVDA), a name he says is underappeciated, as Kepler is expected to increase the GPU market share for the company. Moreover, he says NVIDIA‘s wireless solutions are “doing a fairly good job of building a full suite to their wireless solutions, where they now have a wireless modem solution and an applications processor, which I think is necessary to make inroads, or significant inroads, in the market that they are targeting.”