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.
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