The tech market has shown many signs of life recently, leading many investors -- myself included -- to believe that the worst is over. Today, we have three fresh pieces of evidence to support this thesis.
First, semiconductor titan Texas Instruments
Original Guidance |
Updated Guidance |
Q3 2008 Results |
|
---|---|---|---|
Revenue |
$2.5 billion to $2.8 billion |
$2.73 billion to $2.87 billion |
$3.39 billion |
Earnings per Share |
$0.29 to $0.39 |
$0.37 to $0.41 |
$0.43 |
The mere fact that TI is raising both sales and earnings expectations shows that the quarter is proceeding better than management originally thought. The bottom line could nearly reach pre-crash levels again even though revenue will fall a bit short. This means that we're looking at a leaner, meaner TI today with a tighter grip on its cost structure. That's a great position to be in when sales do rebound to their old levels.
Second, the infrastructure that powers the chip industry is improving too. Semiconductor lithography expert ASML Holding
Texas Instruments is one of ASML's largest customers, so the trickle-down effect is evident here. The company also provides chip-making equipment to other industry leaders like Korean everything-techie Samsung and outsourcing manufacturer Taiwan Semiconductor Manufacturing
And third, there's great news from a giant further down the technology food chain: Storage systems specialist EMC
There's actually more good news out there, including higher guidance from smaller TI rivals Altera
Are your tea leaves telling a different story? Share your insights in the comments below.