03:31 PM
Connect Directly

Tech Investment Analyst Bullish On 2006 Semiconductor Market

Mergers and acquisitions, initial public offerings, and some consolidation prompted by large diversified companies looking for successful fledglings to fill technology holes could make 2006 a good year for semiconductor technologies, a Jefferies Broadview analyst said.

Some Wall Street analysts are glum about 2006 for the U.S. economy because of fears of rising energy costs and bursting housing bubbles. But semiconductors may be a bright spot, said David Creamer, managing director at technology investment banking firm Jefferies Broadview.

There are expectations 2006 will be a good year for semiconductor technologies as mergers and acquisitions, initial public offerings, and some consolidation is prompted by large-diversified companies looking for successful fledglings to fill technology holes, he said.

"The semiconductor price index climbing 20 percent in the last couple of months" is a positive sign, Creamer said.

Global M&A activity has been steady in the years since the technology bubble burst. In 2005, about 58 deals have closed, up from 54 in 2004 and 56 in 2003. Although the number has remained nearly flat, the medium size financial transaction doubled. This year, announced medium size deals reached $51.1 million, up from $26 million in 2004, and $18 million in 2003.

1 of 2
Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - August 27, 2014
Who wins in cloud price wars? Short answer: not IT. Enterprises don't want bare-bones IaaS. Providers must focus on support, not undercutting rivals.
Flash Poll
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Howard Marks talks about steps to take in choosing the right cloud storage solutions for your IT problems
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.