Marvell, Atheros Weakest While Qualcomm is Strongest

3Q production checks largely stable versus prior checks; Marvell (NASDAQ: MRVL), Atheros (NASDAQ: ATHR), Advanced Micro Devices (NYSE: AMD) weakest. We have a fresh look at
production start trends across the top foundry suppliers, FBR Capital reports.

In aggregate, 3Q production starts have remained largely stable since our prior checks as negative revisions by Atheros (-6%), AMD (-3%), and Nvidia (NASDAQ: NVDA) (-2%) were offset by slight production increases from Texas Instruments (NYSE: TXN) (+7%) and Marvell (+6%, small increase after large decline earlier in quarter). On a sequential basis, we see the most relative weakness from Atheros, Nvidia, Marvell, and Mediatek (TPE: 2454), while Texas Instruments and Qualcomm show the most relative strength. In aggregate, foundry starts should grow a few points sequentially in 3Q. Clearly, weakness in the computing sector has not yet eased and remains worse than other sectors, according to FBR.

FBR writes that for Qualcomm (NASDAQ: QCOM), 3Q sequential growth of +12% and 4Q sequential growth of +18% suggest the firm needs more product as it ramps up its Snapdragon or other
smartphone solutions, and as it possibly prepares to begin shipping product into new iPhones soon.

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