Monday, August 2, 2010

Insatiable Bandwidth

Demand in the technology sector continues to be questions. Everybody is so concerned that the cycle has peaked in the semi sector. Some of this is understandable after the Dot Com crash in 2000 and the Great Recession in 2008. Still demand seems to be building for new applications like mobile internet, 3D tv, and cloud computing.

Several of the stocks in our portfolios like Teradyne (TER), TerreMark Worldwide (TMRK), and Riverbed Technology (RVBD) should just be soaring on the Insatiable Bandwidth demand from all these new products. Still only RVBD has broken out but that took explosive earnings.

Interesting clip from the Xilinix (XLNX) CEO on Mad Money. He does a good job of pushing back on the cycle peak. We're just 1 year out of the Great Recession so it seems unthinkable that the tech sector has already peaked. Many a company like TER and XLNX have been posting numbers that match or equal the peaks of 2000, but their stocks lanquish. These could be big winners over the next 5 years as tech finally comes back into favor.













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