Morgan Stanley goes cautious on semiconductors, saying inventories are "creeping up," as measured in dollars, and notebook makers' Taiwan operations saw a "spike" in the same. The result is a risk that chips shipped ahead of orders for 3Q in what the firm calls "the final innings of the semi cycle." Downgrades Intel, Micron Technology (MU), Altera (ALTR), and Xilinx to equal weight from overweight, and cuts ArvinMeritor, Nvidia and ON Semi to underweight from equal weight. But firm upgrades Maxim and Linear Tech to outperform "for their defensive characteristics." INTC off 1.7% premarket to $18.68.
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