RealMoney contributor Tim Collins is going to be very right about the semiconductor complex. I think it is going nicely higher. There's a budding consensus that the stocks have just gotten cheap versus both the Nasdaq and just about the whole market.
The group has a lot going for it. First, it is hated. There's a presumption that nothing can go right because Apple (AAPL) is so dominant. But that's just stupid. If Apple is doing well, then there are many stocks that are going to do well, especially ARM Holdings (ARMH) , which I think is going to take out $30. But I also think that you can buy, as part of my larger seasonality thesis, the stock of SanDisk (SNDK). Qualcomm (QCOM) just won't quit.
You know, I think NVidia (NVDA) is ridiculously cheap on earnings and on patents. The company has raised estimates big, yet I still think it is conservative.
Or how about the communications stocks? It's been an endless slide, as the big telcos seem to have frozen spending. The pressure to grow infrastructure is going to force them to spend, and that makes me like Ciena (CIEN), JDS Uniphase (JDSU), Cisco (CSCO) -- yes, Cisco -- and Juniper Networks (JNPR). They have all been crushed. And I like Google (GOOG). It has social, mobile, cloud -- what's not to like?
When we get to this seasonal turn, it's always the same. There will be people who will tell you that there are order cancellations, and that things are not so good -- worse than we thought -- exacerbated by Europe and damaged by Apple's ascendancy.
I am not buying it.
Things in tech are just as they have been for the last nine out of ten years: ripe with opportunity.