Piper Jaffray Provides Color on Semiconductors

Piper Jaffray provided color on the semiconductors sector. In a research report published today, Piper Jaffray stressed that it was wrong in believing the sector's stock had already reached the bottom. The recent uncertainty about the health of the U.S. economy is driving the stock prices even lower. In the report, Piper Jaffray states, “Our call two weeks ago was that we have seen the bottom in chip shares - clearly we were wrong. We modeled the impact of the natural disaster in Japan and inventory oscillation in the industry and were confident that the industry was at the bottom and improvement in bookings at the foundries was giving us confidence that chip demand would snap back in Q4. However, we were not expecting a double dip recession and the market is now pricing this possibility into equities.”