NEW YORK-Semiconductor companies like National Semiconductor Corp and Advanced Micro Devices Inc. witnessed stock declines on the downgrade handed out by Morgan Stanley to that sector.
In a research note, Morgan Stanley analyst Edelstone downgraded the sector to “in-line” from “attractive”, raising doubts about recent uptakes. He noted that excess capacity and inadequate products still plague the industry.
“The average semiconductor stock has seen valuations rise from 10-year lows in early October to the high end of the 1993-1999 range currently,” wrote Edelstone in the note.
“We believe that sequential growth will be flat to slightly up in the current quarter and flat to slightly down in the first quarter.”
