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By James DeTar
Investor's Business Daily
The bad news continues to roll in for the communication chip market. The good news is that the end is apparently in sight.
Investors slammed Broadcom Corp.'s stock Thursday after two more analysts downgraded the Irvine, Calif., communication chip maker. Applied Micro CircuitsCorp., meanwhile, gave word that this quarter's sales would be sharply lower than expected.
But the chipmakers are looking past the gloom and doom. And investors may soon do the same.
"People say, "Oh my God, is the communications market dead?' That couldn't be further from the truth," said AMCC Chief Executive David Rickey. "In my view, our market is very healthy."
Some on Wall Street think Broadcom and AMCC have bottomed out. Though Broadcom's shares fell to 41 after news of the downgrade, the stock rebounded later in the day to close at 47.63. Shares traded above 85 as recently as Feb. 15.