As predicted, it was a great quarter for the semiconductor industry. Overall, average results were up over 5% Q/Q with very strong quarters reported by INTEL and AMD, both benefitting from the Windows 7 upgrade cycle that is still early in its progression. The “Xitera” FPGA pair delivered spectacular results with Q/Q growth approaching 25% and, in a significant way, outpacing overall industry growth. A little too early to tell but the much heralded design capture phenomena may be seeing the light of day. Very strong growth reported by Atheros as it continues to benefit from 802.11 spreading to connect all things digitial to the network. And this reported growth includes a negligible contribution from the just completed acquisition of Intellon.
Guidance remains conservative, a healthy view given the uncertainty in the overall economy. I would speculate, however, that the combination of the PC market benefiting from the Windows 7 release, the strong onset of the “smartPhone” product category and the somewhat delayed but necessary investment in communication infrastructure will allow semiconductors to have some “strong sailing in the rough seas” of the global economy for 2010.
Tags: Altera, atheros, earnings, Forecasts, FPGA, INTEL, linkedin, Nvidia, semiconductor, TI, Xilinx