Bank of America / Merrill Lynch is cutting its rating and 2010 growth forecasts for the entire semiconductor sector.
BofA said that a correction in the supply chain could “punish” chip stocks and as a result, has lowered its 2010 growth estimate for the sector from 21 to 18 percent.
Bank of America downgraded Intel (NASDAQ:INTC), Texas Instruments (NASDAQ:TXN), Marvell Technology (NASDAQ:MRVL) and LSI (LSI) from Buy to Neutral.
It also cut Maxim Integrated Products (MXIM), National Semiconductor (NSM), Power Integrations (NASDAQ:POWI) and Microchip Technology (NASDAQ:MCHP) from Neutral to Underperform.
The downgrade has had a rippling effect through the sector with Intel and Texas Instruments both heading lower following the opening bell.
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