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Applied Materials, Lam Research among 10 stocks getting downgrades at B. Riley

B. Riley analyst Craig Ellis downgraded 10 chip stocks to neutral from buy on Thursday, writing that he "underestimated potential for a risk" from outbreak of COVID-19, the disease brought on by the novel coronavirus. Among the names he downgraded are: Axcelis Technologies Inc. (ACLS), Airgain Inc. (AIRG), Applied Materials Inc. (AMAT), Alpha & Omega Semiconductor Inc. [a: aosl], Cohu Inc. (COHU), Ichor Holdings Ltd. (ICHR), Intevac Inc. (IVAC), Lam Research Corp. (LRCX), Microchip Technology Inc. (MCHP), and ON Semiconductor Corp. (ON). Ellis said the ratings changes signal a move to "more defensive positioning" compared with a prior goal of "maximizing [year-to-date] upcycle exposure." He wrote that "[w]hile great fear has been priced in with a one-month -37% SOX decline, we can't rule out a move toward, or to, the Great Recession's -57% drop, a more severe outcome than our prior view."

-Emily Bary; 415-439-6400;


(END) Dow Jones Newswires

03-19-20 1516ET

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