SAN JOSE, Calif. Investment banking firm SG Cowen Securities Corp. on Thursday (March 31) raised its semiconductor forecast amid an improved outlook in the information-technology (IT) and IC markets.
SG Cowen (New York) projects that the IC market will grow by 6 percent in 2005 over 2004, up from its previous forecast of 4 percent. In contrast, many analysts project that the IC market will be flat-to-down in 2005.
Meanwhile, the firm has lowered its outlook for PCs, but increased its forecast for IT. Unit shipments for PCs are projected to grow by 11 percent in 2005, down from its previous forecast of 12 percent, according to SG Cowen.
"Our IT user survey shows U.S. corporate IT spending rising 4-5 percent, up from 3-4 percent before," according to SG Cowen. "Mobile device growth remains 10 percent."
The new forecasts reflect a new and upbeat outlook in the market. "The fundamental outlook for technology as a whole has improved slightly since the beginning of the year," according to the firm.
"The recent inventory correction in semiconductors was in line with our expectations and seems largely behind us, paving the way for improving growth in H2:05 and lifting our full-year forecasts for both semiconductor shipments and semi capital spending," according to SG Cowen.