On Tuesday all eyes will be on Intel, as investors look to see if their results confirm a bullish outlook from Deutsche or a bearish call from Jefferies.
Analysts at DB said in a research note they expect third quarter results of semiconductor companies to beat expectations and come in at the high end of guidance.
"We believe the ending of inventory burn, the beginning of restocking and improved end-demand to be the main drivers behind (third and fourth quarter) upside," the note said.
DB recommended investors remain overweight on semis, with 'buy' ratings on Intel, as well as SanDisk and others.
Of course not everyone shares that opinion. Adam Benjamin of Jefferies is probably one of the more bearish analysts following Intel.
He rates the stock as underperform and tells Fast Money in the short term expectations are probably too high for the chip maker. He worries about demand drivers and speculates that PC production cuts could potentially be coming later in the month if the release of Windows 7 doesn't drive PC sales.
And in the long-term he doesn’t see the enterprise PC upgrade cycle really kicking in until late 2010.
So, will Intel results confirm Deutsche’s bullish outlook or Jefferies bearish expectations?
I like the name but valuations are probably rich, says Guy Adami. I’d be a seller.
How about you? What do you think? We want to know!
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