Goldman Sachs upgraded the U.S. semiconductor device sector to overweight. Goldman also added Analog Devices (ADI), Intel Corp. (INTC) and Maxim Integrated (MXIM) to its recommended list, and upgraded Linear Technology (LLTC) to market outperform.
Analyst Terry Ragsdale says he expects a double-hump chip stock recovery, saying that data points are no longer universally negative. He thinks fundamentals are likely to strengthen in Q4 2001, even if the improvement is only inventory-related. The recovery may be uneven, limited by the timing of demand reacceleration and historically high valuations, but Ragsdale thinks stocks are headed up for now. He says he can't see how investors could resist the inflection point.