Top 5 Chip Stocks Focus On LEDs, Networks, Wireless

The Neatest Little Guide to Stock Market Investing
Investors Business Daily

The top 5 chip industry companies are:

28. Atheros Communications (ATHR) . The maker of Wi-Fi and other chips is set to report its latest financial results after the close of regular trading today — and the numbers could be huge. Analysts polled by Thomson Reuters expect per-share profit minus items of 51 cents, up 750% from just 6 cents in the year-ago quarter. Sales are expected to jump 129% to $210.2 million. The stock cleared a cup-with-handle last month.

64. Marvell Technology Group (MRVL) . The maker of networking, wireless and other chips is the only one of these five that is just returning to the IBD 100 after an absence. The other four have been staples of the list for quite a few weeks. In its most recent quarter, it reported EPS minus items of 40 cents, up 700% from 5 cents a year ago. The MainStay Large Cap Growth Fund is among those that have added to their Marvell holdings of late.
3. Aixtron (AIXG) . The company makes equipment used to make LED, or light-emitting diode, chips. LED is fast gaining steam as a green lighting alternative, and LED chips are used in many different types of computer and cell phone displays. UBS initiated coverage this month with a buy rating.

30. NetLogic Microsystems (NETL) . The maker of so-called knowledge-based chips, which accelerate computer networking traffic, recently completed a 6.7-million-share secondary offering, with most of the shares sold by the company, at $28.85. (It’s trading above 31 even after a tough day so far today.) This includes an 883,000-share over-allotment that underwriters exercised.

61. Cree (CREE) . One of the leading makers of LEDs was upgraded to buy from hold by Morgan Joseph last week. It reports tomorrow and, like Atheros, is expected to post big numbers. Analysts polled by Thomson Reuters expect EPS ex items of 44 cents, up 238% from a year ago. Sales are seen rising 70% to $223.3 million. Its year-over-year EPS percentage growth for the four quarters of 2009 was 30%, 100%, 100% and 90%, respectively.

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