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Why are AMD, Chips So Hot?

Monday, 27 Sep 2010 | 5:35 PM ET

The traders are keeping a close eye on the chip space with two major catalysts potentially moving stocks.

What should you be watching?

iPad Vs Playbook

One of the dominant catalysts is BlackBerry’s move to compete with the Apple iPad by introducing a tablet of their own called the Playbook. (Read more about the new device. Click here to go to "RIM Unveils 'PlayBook' Device In Challenge to Apple's iPad")

Ahead of the broadcast Gleacher analyst Doug Freedman told our producers that if you want to play the Apple's success downstream, Broadcom and Texas Instruments make the chips that help power their touch screens.

However, if you’re more interested in the rivals, he says Synaptics , Atmel and Cypress make chips that will be in the competitors.

Oracle on the Prowl

Also Larry Ellison has announced plans to use part of Oracle’s $24 billion in cash to buy start buying semiconductor firms.

Freedman says it’s a bad idea to buy based on M&A rumors since so many companies are potential targets. That said, he thinks AMD and NVIDIA would fit well with Oracle’s strategies.

Hear more from Doug Freedman. Watch the video now!

Playing the Tablet Boom
Whether chips being hot is related to the tablet boom, with Doug Freedman, Gleacher & Co. analyst.




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Trader disclosure: On Sept. 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (IBM), (HES), (JOYG), (XBI), (FTO), (OXY), (ORCL), (PEP), (POT), (RSH), (SU), (RIG), (UPL), (VRTS); Weiss owns (BAC), (MOS), (CSX), (HK), (TXN), (WFR), (QCOM); Weiss is short (SF); Pete Najarian owns (NETL) call spreads; Pete Najarian owns (POT) call spreads; Pete Najarian owns (CNI); Pete Najarian owns (AMZN) call spreads; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (RAX) call spreads; Pete Najarian owns (LLNW) call spreads; Pete Najarian owns (DD); Pete Najarian owns (NOV); Pete Najarian owns (YHOO); Karabell owns (POT), (RIMM), (AAPL); Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST)

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  Price   Change %Change
AMD
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ATML
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BRCM
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CY
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NVDA
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SYNA
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TIT
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