Citigroup upgraded Fairchild Semiconductor (FCS

) and Cypress Semiconductor (CY

) to outperform from in-line.

Analyst Clark Westmont says he upgraded Fairchild due to reasonable valuation, high exposure to consumer electronics, Asia, and power management markets. He raised the 40 cents 2004 earnings per share estimate to 47 cents, and set a $1.05 2005 earnings per share estimate. Also, he raised the $15 target to $23.

Westmont says he upgraded Cypress on product cycle strength in pseudo-SRAMs, USB 2.0, clock chips, and margin leverage. He raised the 64 cents 2004 earnings per share estimate to 75 cents, and raised the $1.03 2005 earnings per share estimate to $1.24. Finally, he raised Cypress' $21 target to $23.