Upgrades for Altera and Xilinx...

Well, this is just a follow up of what I have posted earlier... today we receives another downgrade on Altera which is a FPGA company which has overtaken its primary rival Xilinx in stock price but keeps getting downgrades from analysts...earlier it was Morgan Stanley, now its RBC Capital.

Reason cited were likely lower orders in China's telecommunication equipment makers. Such expectation are typical ones you expect from analysts since the stocks have rallied more than 15% from the beginning of Q3 this year.

From the chart, fundamental, telecommunication market in Asia, US dollar and the RMB valuation... I think the volume from the chinese companies will increase in 2011.

Therefore with all the above, I declare an upgrade of Altera and Xilinx to outperform Target share price USD33 and USD29 respectively.