Global sales of semiconductors set a new high in March, growing by more than 50 percent from last year to just under $23 billion. How should investors play the sector? Doug Freedman, senior semiconductor analyst at Broadpoint AmTech, shared his outlook.
“We’re reiterating our overweight [sector rating] and we want to see people expose themselves to the PC and consumer related spaces, where demand is seasonally the strongest in the backhalf of the year,” Freedman told CNBC.
Fredman said he’s “very bullish” on companies including Intel , AMD , Intersil and Omnivision .
“What we’ve seen in this cycle is rather interesting—investors are not getting carried away by overpaying for the sector and that’s what keeps us bullish,” he explained. “The sector continues to trade at a discount to the S&P 500.”
“We’ve got another two quarters for inventory to be rebuilt before we have to worry about a downside of the cycle,” he added.
- Watch Freedman's Previous Appearance on CNBC (Apr. 13, 2010)
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Freedman does not own shares of ISIL, AMD or INTC.