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What Happened to Cypress Semi?

Published: Thursday, 12 Nov 2009 | 8:04 PM ET

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By: Tom Brennan
Web Editor, Mad Money

Ever see Minority Report? Remember when Tom Cruise is moving data and images around on a transparent computer screen? Well, that touch-sensitive technology has arrived sooner than expected, thanks in part to Cypress Semiconductor [CY Loading... () ].

During its Nov. 4 analyst day, Cypress announced that its touch-screen business has accelerated significantly for both cell phones and notebook computers. The top five handset original equipment manufacturers use the company’s winning designs, as does a Windows 7 laptop expected to launch in early 2010. The new portable PC “wasn’t quite as cool as Minority Report,” CEO T.J. Rodgers said on his latest conference call, “but you could see the beginning of it.”

For all its future promise, though, Cypress Semi’s stock hasn’t performed well in the recent past. CY, which left the NYSE for the Nasdaq on Thursday, has lost 13% since Cramer’s included it in his list of top mobile Internet picks. But he wasn’t willing to give up on the company just yet. Not with the touch-screen business, a new generation of chips launched this year and a successful history of incubating cutting-edge technologies (see: SunPower [SPWRA Loading... () ]).