With emerging markets gobbling up notebook computers, Morgan Stanley raising its 2007 PC growth forecast 4%, and the major PC makers all up more than 5% in a month – has the PC become a cornerstone of the digital revolution?
CNBC Silicon Valley Bureau Chief Jim Goldman joined the traders via satellite, saying the report from Morgan Stanley was just what the tech industry was looking for. It will be great news for companies like Dell (DELL), Hewlett-Packard (HPQ) and Apple (AAPL), he said.
Taken a step further, higher global demand will also benefit Intel (INTC) and AMD (AMD) as they make the processors used in most PCs on the market. China and India are the future of this industry, he said, and the fact that those countries are increasing their demand for PCs means “great things” for the industry as a whole.
CNBC Silicon Valley Bureau Chief Jim Goldman joined the traders via satellite, saying the report from Morgan Stanley was just what the tech industry was looking for. It will be great news for companies like Dell (DELL), Hewlett-Packard (HPQ) and Apple (AAPL), he said.
Emerging markets will begin to adopt technology that has historically been too expensive now that prices are coming down -- good news for Apple especially, Goldman said. Emerging markets will open up a new customer base for companies that had experienced a saturation point as PC sales in the U.S. have flatlined in past years.
Guy Adami thinks investors could get ahead of Microsoft (MSFT) before its earnings next month, which he believes may be record setting in the wake of this news. MSFT is an obvious beneficiary of anything relating to strength in the PC market.
Jeff Macke thinks tech companies that specialize in anything wireless, including laptops, are poised to go higher as emerging markets embrace the digital revolution. “There’s no place to go for these markets but up,” he said.
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Trader disclosure: On Sept. 20, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (EMC); Najarian Owns (AAPL), (VMW), (CREE); Finerman's Firm Owns (BEAS), (LTD), (BWS), (NMX), (NYX), (COP), (KALU); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm And Finerman Own (HD)