Prognosis '96 Semiconductors

Positives

-- PCs continue to boom, driving sales of memory chips and Intel's Pentium microprocessors.

-- Use of chips in a growing variety of products will smooth the traditional boom-and-bust cycles.

Negatives

-- Capacity shortages could hurt producers of memory chips and chipmakers that contract out.

-- Investor jitters about possible market slowdowns could sink stocks and limit chipmakers' investing in new plants.

PROGNOSIS '96--SEMICONDUCTORS
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