Semiconductors:1Q17Earnings Preview,Expect Upside to Consensus and Seasonal Guidance.Stick with MCHP,TXN,ON and the ‘Cron!

We expect upside to Consensus and seasonal guidance during earnings seasonfrom most semiconductor companies as the PC end market keeps getting strongerand demand from other end markets appears to be mostly stable. Our only concernlies with the wireline communications end market due to lower capex from Chineseservice providers. We continue to favor high-quality stocks and the DRAM cycle.

    Our Buy-rated stocks are Microchip, Texas Instruments, ON Semi, and Micron.

    Upside to 1Q17 guidance, seasonal 2Q17 guidance. We expect upside to 1Q17guidance in aggregate and seasonal 2Q17 guidance as the PC end market isgetting stronger and demand from most other end markets such as auto andindustrial remains solid.

    PCs getting better