FBR Capital's Semiconductor Trading Tidbits

FBR Capital released its Semiconductor Trading Tidbits today and offered guidance on the following companies:

For Intel Corp. (NASDAQ: INTC) (Market Perform), we do think shares can grind higher in coming quarters if the tablet impact is not too great on PCs, particularly given low valuations, though it is difficult for us to get excited about the stock.

For Advanced Micro Devices (NYSE: AMD) (Market Perform), we think shares are interesting given that the company trades at a 10x P/E on uncompetitive product—essentially a “free call option” on 2011 execution and potential market share gains; we await a cheaper entry point near $6 to $7 if possible.

For NVIDIA Corp. (NASDAQ: NVDA) (Market Perform), we still remain somewhat concerned about Sandybridge and Fusion's impact on discrete GPU attach rates, though the story near term seems to be with Tegra, where we also remain somewhat skeptical about the magnitude of this product ramp given management's extreme exuberance on prior product ramps that have not panned out (think Ion chipsets, among others).

For LSI Corp. (NYSE: LSI) (Outperform), we think shares are very ownable here for investors with a six-month to 12-month investment horizon or more as we think shares will begin to work in 2H11 as new customer programs begin to ramp, and given attractive valuations.

For Marvell Technology Group (NASDAQ: MRVL) (Outperform), some things are going well at Marvell and others less well; given its "going well" factors, and the stock's low 11x P/E multiple, we remain Outperform-rated, but note that the stock seems somewhat catalyst-light outside of management's share buyback plan.

For ON Semiconductor Corp. (NASDAQ: ONNN) (Outperform), while only about 25% of its business is PC related, we think ONNN is one of the more attractive long opportunities in the chip sector given stock underperformance (some of this is due to the Sanyo deal keeping investors away), given the vast operational efficiency opportunities in fixing Sanyo Semiconductor, and given the stock's low 8x P/E multiple (possibly 5x future earnings). We think ONNN can work toward a 12x P/E on $1.50 of annual EPS over the next three to four years.