Diversity is Tur-key at Semiconductor Companies
Barron’s says the price war between Intel and AMD (our discussion here) should send investors to more broadly diversified (less PC-oriented) semiconductor stocks.
With semiconductor stocks, diversity is key-Barron’s | Reuters.com
A price war between chipmakers Intel Corp. (INTC - Annual Report) and Advanced Micro Devices Inc. (AMD - Annual Report) highlights a slowdown in the PC market and investors intent on the semiconductor industry might do well to consider shares in companies with more diversified revenue streams, Barron’s financial newspaper reported on Sunday.
Diversity is seldom what you should seek in semiconductors. Typically you want pure-play exposure to an end market that is working. If there are no end markets that are clearly working, you may just want to avoid the semis altogether.
Disclosure: William Trent has a long position in SMH.
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