Can TXN [Texas Instruments] break away from the disfavor chips seem to be stuck in?
In the short run, that won’t happen. However, the fundamentals for growth in the DSP [digital signal processing] and analog segments are very good. And the company has a good focus. Q: Is RFMD a good chip stock to buy now? A: RF Micro Devices makes chips for the wireless market, mainly for cell phones. Near-term, there is some turbulence in the market, but they are benefiting, as are all of the gallium-arsenide companies. We aren’t advising on which stocks to buy, as much as analyzing their basic business. Q: In your analysis of companies’ “basic business,” Manoj, what companies look best in this time of great nervousness? A: You have to look at three things: A specific company’s growth prospects. Then, look at valuation ratios. And then, look at the financial strength. For growth, there are different trends happening in the industry. One is migration toward more advanced geometries. Second, companies benefiting from Internet infrastructure growth. And then, within equipment companies
