The Street.com's Jim Cramer says that after a tough week, the semiconductor industry finally gets some good news. Will Marvell Technology (NASDAQ: MRVL) (Cramer's Take) give what TriQuint (NASDAQ: TQNT) (Cramer's Take) and Broadcom (NASDAQ: BRCM) (Cramer's Take) took away?
Last week, we had the one-two punch of TriQuint and Broadcom really making the whole Internet tsunami look more like a tropical storm. They both talked about withering demand, and Broadcom verified the bears' double-order thesis, but this morning Marvell says that things are on target, there's no wavering and demand is strong. Bears can take their pick.
TriQuint did have a product hole and too much dumb-phone, but the demand strength at Marvell, which is much more like Broadcom in product array, makes me feel like the problem is more Broadcom's execution than waning demand.
Broadcom's challenged in a couple of ways. First, it doesn't make as much money per sale as it should -- the margins weren't so hot. Second, however, is the idea that it isn't going to have a good fourth quarter, which is a huge red flag in that I don't know a telco company hurting so badly that it won't do well in the fourth quarter.
Marvell's revenue boost from a range between $680 million and $730 million to a range between $760 million and $775 million says that Marvell's taking some share and there are a ton of orders out there to be had.
I am looking for a turn in the group off this preannouncement, one that's needed because the last few days have been rough for the parts makers.
Most important, though, I think this will re-ignite Apple (NASDAQ: AAPL) (Cramer's Take), which has been stalled at $205 waiting for the next breakout.
From TheStreet.com Network
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.
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Reader Comments (Page 1 of 1)
10-26-2009 @ 10:16AM
Beltway Greg said...
This type of flagrant pumpery is ridiculous. One of two things is at work here and should be recognized for what it is.
a. Apple has hardly stalled. Call me in a month if it's still at $205 and Fraud Money guru Joe Terranova a.k.a. Lil Joe
has suggested you wait to buy Apple at $192 and set a stop at $190? A month ago he suggested you wait for the pullback to $160. As soft rock superstars sang, "Even lovers need a holiday," and sometimes stocks need to take a break.
b. Marvell Tech? Better ways to lose money but to call attention to it by sullying the fine name of Apple is sad.
And you know, come to think of it, the world would be a little better if we all had some flagrant pumpery in our lives from time-to-time.