The roughest spot is in communications-infrastructure chipmakers, companies like Vitesse Semiconductor , Applied Micro Circuits , PMC Sierra .

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Among larger-cap names, Kennedy likes the beaten-down shares of PMC Sierra (nasdaq: PMCS - news - people ).

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Other competitors in the technology sector include: Intel (INTC), PMC-Sierra, Inc. (PMCS), and Texas Instruments (TXN).

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" CSFB cut Nortel to "buy" from "strong buy, " and it also cut PMC-Sierra (nasdaq: PMCS - news - people) to a "hold" from a "buy.

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PMC-Sierra shares appear to be in play.

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