Tech stocks jumped sharply on Thursday with the NASDAQ Composite (INDEXNASDAQ:.IXIC) jumped to multi year highs aided by strong gains from across the sector. The tech indices ended higher by 66.54 (2.17%) high point of the day at 3,135.81.
First Solar, Inc.(NASDAQ:FSLR)’s rating has been maintained at `Equalweight' by Barclays, with a price target of $18 a share.
Barclays analyst Amir Rozwadowski, who met the senior management, came away feeling optimistic about the company's prospects. The company has a disciplined approach to tackling issues and problems while it is determined to achieve it earning potential till 2016.
However the analyst was not blind to the threats facing the company in particular and the industry in general. The threats include falling ASPs for crystalline systems.
Has FSLR Found The Bottom? Find Out Here
In the long-term, Rozwadowski found visibility for markets supporting 1GW of incremental pipeline. He also felt more comfortable for the L-T margin trajectory. However, despite a goal being great, execution is the real key.
Shares in First Solar rose 7.4 percent at $20.03 on Thursday.
Meanwhile shares in Micron Technology, Inc.(NASDAQ:MU) and SanDisk Corporation(NASDAQ:SNDK) rose on Thursday after OCZ Technology said it expected its revenues for the second quarter to fall below forecasts due to a shortage in components such as NAND chips.
Shares in Micron rose 7.85 percent to $6.8 while that of SanDisk jumped 8.40 percent to $44.01.
Will SNDK and MU Continue To Move Higher? Find Out here
The lower output is expected to tighten prices for chip-makers. The memory chip industry has been witnessing consolidation due to low prices coupled with steadily rising investment costs to implement new technologies that have been dqueezing their margins and affecting profitability.
Chipmakers have been recently ramping up their production capacities expecting demand from mobile handset makers such as Apple Inc.(NASDAQ:AAPL), Nokia Corporation (ADR)(NYSE:NOK), Amazon.com, Inc.(NASDAQ:AMZN) and others who are launching their devices this fall.