A Banc of America analyst raised his view on semiconductor makers Thursday, upgrading seven stocks including Intel.
Sumit Dhanda upgraded the sector to "Overweight" from "Neutral," saying he sees evidence that the stocks will rise. Wall Street expectations are lower, he said, as an inventory buildup and concerns about the U.S. economy are now included in analyst estimates.
Dhanda upgraded Intel Corp. to "Buy" from "Neutral," saying the company's profit margins look better than expected in the first quarter, which could result in it beating Wall Street estimates.
Share buybacks will add a few cents per share to profits as well, he said, and the company is gaining market share from Advanced Micro Devices Inc.
The analyst also upgraded shares of Analog Devices Inc., Power Integrations Inc. and Semtech Corp. to "Buy," and raised his ratings on PMC-Sierra Inc., LSI Corp. and National Semiconductor Corp. to "Neutral" from "Sell."
He reiterated a "Neutral" view of Microchip Technology Inc.
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