All this week we’ll be hearing the outlook for key sectors. What must you know to trade tech in the days ahead?
On Monday, new data sparked optimism about the technology sector after a trade group said global semiconductor sales rose substantially in July due to strong demand for products such as netbooks and cell phones.
Specifically, the trade group said worldwide sales of semiconductors were $18.2 billion in July, up from $17.2 billion sales recorded in June.
And on Friday, Intel echoed similar sentiments when the #1 chipmaker raised its outlook for third-quarter revenue on stronger-than-expected demand for its microprocessors. Intel's microprocessors are used in more than three-quarters of the world's personal computers, so its results are seen as a barometer for the global PC sector
The tech bulls also made ground earlier in the month after RBC analyst Mike Abramsky generated a strong tailwind for the smartphone trade when he raised his targets on Apple , RIM and Palm citing equal opportunities for growth in each of them.
Said Abramsky: "Smart phone Market: Huge, Nascent, and Underpenetrated."
Not to get all technical on you but he said, "we are raising our smart phone penetration forecast to 35.1% of global handsets or 504 million units (395 million prior) by calendar 2012."
And as a result he lifted price targerts.
"We are raising our price targets on RIM from $100 to $150, on Apple from $190 to $250, and on Palm from $18 to $25, justified by increased market shares which, as visibility improves to the huge smart phone opportunity, offer upside to financials and potential multiple expansion." (You can read more about this topc in Jim Goldman's blog Tech Talk)