Barron's: Roth Cuts Chip Stocks

According to an article on Barron’s, analyst Arnab Chanda of Roth Capital thinks that the big rally in chip stocks is over. He writes, “We believe that the upturn that began [in] November 2008 is likely coming to an end, based on numerous data points and metrics suggesting that Q2 is likely to be the last quarter of the upturn with business likely slowing in the second half.” At the same time he thinks that we’re headed for only a “mild correction.” Arnab downgraded many stocks this morning from “buy” to “hold,” namely Atheros ATHR, Broadcom BRCM, Cavium CAVM, Monolithic Power MPWR, NetLogic Microsystems NETL, Power Integrations POWI and Volterra VLTR. “Hold” rating was maintained on Intel INTC, Marvell MRVL, Qualcomm QCOM and Silicon Labs SLAB, while “buy” rating was maintained on Nvidia NVDA. By 11:22 am, ATHR was down 2.53% to $33.56, BRCM edged lower 0.90% to $32, CAVM slid 1.90% to $25.30, MPWR was off 2% to $20.10, NETL plunged 4.24% to $27.33, POWI dipped 4.85% to $33.33, VLTR plummeted 3.55% to $21.46, INTC dived 1.14% to 21.64, MRVL fell 1.41% to $18.23, QCOM declined 0.08% to $37.27, SLAB shed 0.59% to $45.80 and NVDA tumbled 1.47% to $12.78. More Analyst Ratings here.