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Nvidia, Micron to navigate volatile Semicon sector

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CIOL Bureau
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NEW YORK, USA: Analystfirms are forecasting modest growth in the semiconductor industry, as sluggishPC sales and economic setbacks have weakened demand.

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With old revenue drivers on the downswing, chipmakers suchas Micron Technology and Nvidia  are making attempts to reinvent themselves.

The Paragon Report examines investing opportunities in theSemiconductor Industry and provides equity research on Nvidia Corporation andMicron Technology, Inc, said a press release.

The graphics chip market remains one of the few bright spotsin the semiconductor industry.

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Nvidia reported third-quarter sales and profit that toppedanalysts' estimates, lifted by demand for chips used by computer gamers anddesigners, the release added.

Patrick Wang, an analyst at Evercore Partners Inc., saysNVIDIA has been winning market share in sales of graphics processors fordesktop PCs from Advanced Micro Devices Inc.

Nvidia is presently trying to lessen its dependence onpersonal computers with a new range of chips called Tegra. The processor ismeant to challenge products from Texas Instruments Inc. and Qualcomm Inc. inthe market for chips that run programs in phones.

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The Paragon Report provides investors with an excellentfirst step in their due diligence by providing daily trading ideas andconsolidating the public information available on them.

Meanwhile, in the memory chip segment, industry sources in Taiwanreport that DRAM contract prices for the second half of November, due tosluggish demand from PC OEM makers, dropped by nearly 8 per cent sequentially.

Because the PC market is going into the traditional off-season,PC OEMs have decreased orders for DRAM, the sources indicated. In addition, tightsupply of hard disk drives due to the impact of flooding in Thailand hasdiminished shipments of PCs and therefore demands for DRAM, the release said.

Micron Technology warned that continued oversupply of DRAMchips will weigh on margins, adding to investor worries about tepid PC salesand casting a shadow on expectations for the upcoming holiday season.

Earlier this month shares of Micron got a bump after a California jury deniedRambus Inc. billions of dollars in damages as it determined that chip-makersMicron Technology, Inc. and Hynix Semiconductor Inc. didn't conspire to fixprices of memory chips in order to make products designed by Rambus moreexpensive, the release added.

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