A pickup in spending is expected in the second half of the year in the memory segment of the semiconductor capital equipment space for companies levered to developments in DRAM and NAND flash, says Patrick Ho, Vice President at Stifel Nicolaus & Co., Inc.
“Overall, we should see a pickup in NAND flash in the second half of the year, and that should trickle down positively for capex spending in that customer segment,” he said. “I think what I characterize as what I call a wild card is DRAM. I think DRAM is beginning to show some signs of recovery.”
Ho recommends Lam Research Corporation (LRCX) in terms companies that will benefit from a recovery in memory. When looking at the group as a whole, he likes Lam Research based on, not only near-term industry fundamentals, but also longer term due to the acquisition of Novellus Systems, Inc.
“Plus, by their acquisition of Novellus, I do believe that it opens up opportunities with Intel that Lam Research never had before this deal. So both near term and long term, I do like that name, it’s one of my preferred names at this time,” Ho said.
Lazard (LAZ) Expert Analyst Sees Flash Technology as Big Benefit to Fusion-io (FIO)
September 18, 2012
Fusion-io (FIO) Pioneers I/O Flash Technology for Increased Cloud Computing Performance
February 14, 2013
U.S. REITs Continue to Show Stable Outlook Through 2012
June 27, 2012
Irrigation Equipment Demand Grows Through 2012 But Approaches Tipping Point
August 20, 2012
MPLX LP (MPLX) Transports Oil Without Commodity Exposure; No Debt After Cash in 2012
March 27, 2013