Tech Sector
Intel Warns of Weaker Demand and Revises Forecast, this sort of news was expected to send shivers down shareholders of tech stocks but it DID NOT! In fact, the tech majors on Wall Street (Taxes Instrument, Cisco, Juniper) were all unshaken. They gain in mid-day trading but gave back some gains right before market close on Friday.
Intel has lost its lead as a sector leader in the technology arena, not because they are not producing good products but more of its competitors catching up with them.
AMD is Intel's long time rival in the PC processor field. In the past 3 years, AMD has stepped up is R&D and production to combat Intel's aggress anti-competition distribution and sales channel. AMD is gaining in foothold in the most lucrative part of the PC Processor segment, the high-end server and workstatation processors. These chips all command a high premium, a top of the line chip cost about US$1000 in bulk orders of 1000 units. Dell had an exclusive with Intel for their chipsets and CPUs, however realizing AMD dominance, they are now considering adopting enterprise wide AMD solutions (this was a taboo topic in Dell some years back as Intel threaten to cut Dell off should they choose to have AMD solutions in their product line up)
Intel has lost it's leadership and as an industry bell weather. Tonight, Texas Instrument’s Q1 earnings will set the tone for the Tech Sector. If they posted better than expected results and even better Q2 guidance, you can see the mirror effect on SGX listed tech stocks (i.e. Chartered, Stats, UTAC) To further add on, AMD has outsourced some of it's manufacturing to Charter and I am sure there will be more positive effect when AMD gains more market share.
Chartered, StatsChipPAC and UTAC have gain considerably in the last few trading sessions and according to the charts; there seem to be more to come if Taxes Instrument post positive news.
UTAC Daily Charts
StatChipPAC Daily Charts
Chartered Daily Charts
Intel has lost its lead as a sector leader in the technology arena, not because they are not producing good products but more of its competitors catching up with them.
AMD is Intel's long time rival in the PC processor field. In the past 3 years, AMD has stepped up is R&D and production to combat Intel's aggress anti-competition distribution and sales channel. AMD is gaining in foothold in the most lucrative part of the PC Processor segment, the high-end server and workstatation processors. These chips all command a high premium, a top of the line chip cost about US$1000 in bulk orders of 1000 units. Dell had an exclusive with Intel for their chipsets and CPUs, however realizing AMD dominance, they are now considering adopting enterprise wide AMD solutions (this was a taboo topic in Dell some years back as Intel threaten to cut Dell off should they choose to have AMD solutions in their product line up)
Intel has lost it's leadership and as an industry bell weather. Tonight, Texas Instrument’s Q1 earnings will set the tone for the Tech Sector. If they posted better than expected results and even better Q2 guidance, you can see the mirror effect on SGX listed tech stocks (i.e. Chartered, Stats, UTAC) To further add on, AMD has outsourced some of it's manufacturing to Charter and I am sure there will be more positive effect when AMD gains more market share.
Chartered, StatsChipPAC and UTAC have gain considerably in the last few trading sessions and according to the charts; there seem to be more to come if Taxes Instrument post positive news.
UTAC Daily Charts
StatChipPAC Daily Charts
Chartered Daily Charts
posted by Unknown @ 3/06/2006 01:10:00 PM
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