Some experts are betting that technology stocks will see a boost as holiday season draws closer. Craig Berger, senior technology, media and telecom analyst at FBR Capital Markets shared his insights on the tech stocks that will could potentially benefit the most.
“I’m bullish on semis (semiconductors) and tech overall because I believe inventories out there are very low and that Christmas demand is going to be better this year than it was last year,” Berger told CNBC.
Silicon Labs—“If you want a growth stock that’s still small and got a lot of upside from here, I like Silicon Labs,” said Berger. “They sell into iPod Nano and into communication and networking markets, which I like.”
Marvell—“They sell into hard disk drives, the PC space and Blackberries and a host of other products and both of these companies are good growers and sport very attractive valuations,” he said of the firm.
Texas Instruments—“I think the stock can move higher, but if for whatever reason, the carry trade unwinds, the macro stuff starts to get bad again, this is a stock that’s very cheap on evaluation basis – it pays big dividend, has a attractive big cash position and so it’s defensively offensive to some degree,” he said.
Fairchild Semiconductor International—“It’s a small cap stock [with] very attractive valuations,” Berger said of the firm. “These stocks are trading at all-time low enterprise value to cash flow metrics, which is potentially a little boring but pretty important. These companies are making huge amounts of cash and this is a restructuring turnaround story with a fairly few management team that’s reshaping the business and the value is not recognized in the stock yet.”
“I think the E-book readers are very popular right now, and the netbooks have had a big run and continue to be pretty popular,” he added. “But those may transition over to lower-power consuming chips from guys like Nvidia or Qualcomm .”
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Analyst’s firm owns shares of TXN and FCS.