Is the Worst Over for Chip Makers?

Goldman says rebound will arrive in fourth quarter. Lehman says, ''Not so fast!'' StaffAugust 13, 2001

Goldman Sachs upgraded several semiconductor companies, according to The Wall Street Journal. A Goldman research note said that data points are no longer negative and that fundamentals will likely strengthen in the fourth quarter of 2001.

Goldman allowed that the recovery may be “uneven, limited by the timing of demand reacceleration and historically high valuations.”

The Journal reported that Goldman’s analysts believe personal computers and handsets will be on the “leading edge” of the recovery, which is why they upgraded Intel to recommended for purchase.

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But analysts from Lehman Brothers were more cautious and said that signs of a recovery among chip makers may not be evident until the third week of September, or after European computer makers are finished with their summer vacations.

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