Citigroup Releases Report On Semiconductors

Citigroup released a research report on Semiconductors including Intel Corporation INTC Nuveen Select Tax-Free Income Portfolio NXP, STMicroelectronics N.V. STM, Integrated Device Technology, Inc. IDTI, Altera Corporation ALTR and Michigan Technology MU reporting Day 2's outcome of Citi's Global Technology Conference. In the report Citigroup writes, “Day 2 of Citi's Global Technology Conference provided further evidence of the on-going inventory correction in semiconductors. Despite Avnet's assertion that they do not have to take any “drastic” measures on inventory, several chipmakers (NXP, STM, IDTI, ALTR) affirmed that an inventory reduction was underway by customers. To be sure, we continue to find limited evidence of dramatic end-demand cuts (e.g. distributors, EMS reaffirmed guidance). We view this inventory reduction as a function of: 1) risk management given end-demand uncertainty; 2) depleting modest excess post the Japan earthquake; and 3) responding to reduced chip lead times. We continue to see risk to TXN's mid-quarter update.” Intel Corporation is trading at $20.08, Nuveen Select Tax-Free Income Portfolio is trading at $14.02, STMicroelectronics N.V. is trading at $6.03, Integrated Device Technology, Inc. is trading at $5.59, Altera Corporation is trading at $35.20, Michigan Technology is trading at $6.15.