I believe this pullback in semis is not because of a slow growth in the economy, but perhaps in part to Windows Vista. My belief is that most people are holding off their decision to buy a new computer until Vista ships. I have conducted informal polls around my working environment and among my friends in regards. Everyone seems to be of agreement. I sent an email to Microsoft investor relations and they stated that Vista will ship in January 2007 and will roll out on OEM systems in late November. I did download the Microsoft Outlook, Office 2007 and Vista beta operating system. The Vista operating system is complex and will require a newer faster machine. Another reason why consumers are not buying new computers lately is because they are waiting for quad-level processors that Intel is stating that it will have in the near future. So my thesis is that the pullback in semis is only temporary. Your entry point for TXI and MU should be in the next few months. The entry point for MRVL is now. I say to wait on MU to pull back some more. TXI is well positioned in that it increased its dividend and aggressively buying back stock. Unsure if it will pull back that much if at all. MRVL is a buy, MU is a buy once it pulls back a few more. When quad level Vista equipped PCs ship, then that will be the semis new day and its coming in the next few months...
You do not know much about Microsoft products do you? Each new "upgrade" gets less and less consumers since people get sick of the BS. Vista will have little effect on PC sales, it's gonna be the other way around.