Chip Stocks That Need Estimate Cuts: All of Them
Here’s a cheery item on the chip sector that I missed while I was off at this morning’s Apple (AAPL)-sponsored Jack Johnson concert in San Francisco. Christopher Danely, semiconductor analyst at J.P. Morgan, asserted in a research note this morning that “deteriorating demand will bring about a correction in semiconductor estimates and stocks over the next four to six weeks.”
Wrote Danely: “We expect almost every semiconductor company we cover to lower estimates as a result of the correction.”
Danely does say that a fourth-quarter rally in the group is likely after the bad news comes out during October earnings season; he points out that the SOXX and the Nasdaq have gained ground in the fourth quarter in five of the last six years.