UPDATE 1-Oppenheimer cuts Intel and other chipmakers, raises TI

* Cites possible downshift in PC demand trends

* Sees TI to continue to gain market share

July 9 (BestGrowthStock) – Oppenheimer & Co downgraded its rating
on Intel Corp (INTC.O: ) and several other chipmakers, citing a
downshift in demand trends for personal computers.

The brokerage downgraded shares of Intel to “perform” from
“outperform” and removed its $30 price target on the stock.

“Data suggests supply is catching demand, setting the stage
for a possible fourth quarter inventory overbuild/correction —
barring a significant second-half demand inflection,” analyst
Rick Schafer said in a note.

Intel’s diversification efforts outside of the PC arena —
in targeting smartphones and embedded computing — were not
enough in the near term to offset the downshifting PC trends,
Schafer said.

The brokerage upgraded its rating on Texas Instruments by a
notch to “outperform” from “perform.” It has a $30 price target
on the stock.

Texas Instruments, whose chips are used in products ranging
from cellphones to industrial equipment, will continue to gain
market share as strong demand in analog and embedded processor
continues to boost mix, the brokerage said.

Oppenheimer also cut its ratings on Advanced Micro Devices
(AMD.N: ) to “underperform” from “perform” and on Atheros
Communications Inc (ATHR.O: ), Conexant Systems Inc (CNXT.O: ),
Monolithic Power Systems Inc (MPWR.O: ) and Marvell Technology
Group (MRVL.O: ) to “perform” from “outperform.”
(Reporting by Sudipto Ganguly in Bangalore; Editing by Jarshad
Kakkrakandy)

UPDATE 1-Oppenheimer cuts Intel and other chipmakers, raises TI