[The data] could prove marginally positive for ATI. Its share gain in the performance DX9 sub-segment is encouraging, and we believe this is the beginning of more significant high-end share gains by ATI in upcoming quarters. |
Clearly, if the company is successful with this, it would be extremely significant given the cost advantage of 3D memory over NAND. |
Despite the stock's strong performance in recent months, we are reiterating our outperform rating and are raising our price target from 660,000 won ($ 673.43) to 770,000 won. |
Guidance for the April quarter was appreciably better than expected. |
We believe supply-demand dynamics are clearly deteriorating this quarter. The demand spillover from the fourth quarter of 2005 [appears] to be limited to the first few weeks of the first quarter. |
We believe that the improved order outlook suggests that the long-awaited acceleration in spending for 3G infrastructure build-outs in U.S. and China is upon us in 2006. |
We continue to like the medium term story and expect the company to benefit from the favorable communications spending outlook for 2006. |