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Top Analyst Reveals 5 Top Semi Stocks

Tuesday, 29 May 2012 | 2:07 PM ET

Chances are, if you trade the market regularly, the action in the semiconductors has caught your attention.

The XSD has corrected about 15% off recent highs.

Is the pullback an opportunity? How should you put money to work in the space?

Although there are ways to play the space, comments from top Evercore analyst Patrick Wang - the Wall Street Journal’s ‘Best On The Street’ Semiconductor analyst - suggest broad bets are not your best move.

“I’m not all that bullish broadly," he says on CNBC's Fast Money Halftime Report. Overall demand just isn’t all that great.”

But that doesn’t mean there isn’t opportunity.

In a challenging environment, Wang tells us it’s important to, "look for stocks with strong competitive positions, a robust dividend and a secular growth story."

And ahead of the broadcast Wang told us that he's identified 5 of them. They follow:

Texas Instruments: Overweight Price target: $38
Intel: Equal-Weight Price target: $27
Monolithic: Overweight Price target: 26
Applied Micro Circuits: Overweight Price target: $11
On Semiconductor: Overweight Price target: $11

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Of all the stocks listed above, trader Jon Najarian likes Intel best. “Whether it’s a smartphone or tablet, Intel makes chips that these devices need.”

Tech's Mojo and the Best Retail Buys
The FMHR traders weigh in with their top plays in tech and the euro. Patrick Wang, Evercore Partners, provides his best chip plays, including Texas Instruments and Apple. Also, Goldman's upgrade on coal and the best retail stock buys, with Michael Binetti, UBS analyst.

Posted by CNBC's Lee Brodie



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Trader disclosure: On May 29, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long BAC CALL SPREADS; Jon Najarian is long GS CALL SPREADS; Jon Najarian is long INTC CALL SPREADS; Jon Najarian is long IBM CALL SPREADS; Jon Najarian is long CIEN CALL SPREADS; Jon Najarian is long LM CALL SPREADS; Jon Najarian is long DDMG; Jon Najarian is long CIGX; Jon Najarian is long CBOE; Jon Najarian is long CME; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Steve Cortes is long XLE; Steve Cortes is long CLX; Steve Cortes is long AZP; Steve Cortes is short COH; Steve Cortes is short JWN; Steve Cortes is short XHB VS. S&P LONGS; Steve Cortes is short EUR CURRENCY

For Michael Binetti
UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of the following companies' common equity securities as of last month`s end (or the prior month`s end if this report is dated less than 10 days after the most recent month`s end): JCP
The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in NKE
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: KOH
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: RL
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: KOH
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: RL
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: KOH
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: RL




CNBC.com with wires.

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