FBR Capital Has Some Notes On The Chip Sector (QCOM, ATML)

FBR Capital Markets is out with a research report discussing the chip sector, in particular QUALCOMM, Inc.

and Atmel Corporation

. Regarding QCOM, FBR says, "We do think the firm is benefitting from 1) legitimate smartphone strength, 2) robust Android traction, 3) initial builds of CDMA iPhones in 1Q'11 and then likely more aggressive iPhone and iPad related shipments in mid-2011, 4) royalty benefits as Nokia (a roughly 2% royalty payer) loses share to higher royalty rate paying customers, and 5) likely currency tailwinds in 4Q'10." Regarding ATML, FBR writes, "Atmel shares have had a very powerful run higher on the back of its success in ramping touchscreen control chips into Samsung, HTC, Motorola, and others (Atmel has been one of the few "story" stocks in the chip sector lately)."