Huawei top management member Richard Yu has used his personal Facebook page to hint that the company will release its Ascend P6 smartphone at the Roundhouse in London, a large venue in the U.K. city. The announcement is scheduled for June 18. The Wall Street Journal says about the Huawei smartphone launch:

Huawei, the world’s second-largest supplier of telecom network equipment after Sweden’s Ericsson, is trying to establish itself as a consumer brand by increasing marketing efforts. The outcome of the London event and subsequent sales of the P6 could determine the future of Huawei’s smartphone business, at a time when its core telecom equipment business faces more challenges due to security concerns raised by lawmakers in the U.S. and the U.K.

Huawei’s plan has two drawbacks. The first is that Yu’s Facebook page is confusing because it includes veiled messages from his company, primarily in the form the slogan “Make It Possible: Beauty Is Worth Waiting For.” The statement does not mean anything, which renders it worthless as a means to introduce the Ascend P6. Yu’s Facebook page further messes the message by including items like what he has eaten recently (“Delicious breakfast in London.”) and the location of the company’s new regional headquarters:

New home! We moved our UK rep office from Basing Stoke to Reading a few months ago. We expanded its capacity to fit a thousand people, and we’re loving the new neighborhood!

All in all, it is a stupid jumble of facts and comments.

Yu’s second mistake is that his Facebook page is a less than ideal place to hint about a product. The evidence shows there is very little traffic to his page. In Facebook lingo, Yu has only 1,127 people “talking about this” — “this” being the launch of the Ascend P6. Facebook may face some of the negativity for the lack of success of the campaign. However, most of the blame belongs with Yu’s fumbling.

The final error is has nothing to do with Facebook at all. It is that Huawei will enter an immensely crowded field with the Ascend P6. Huawei’s skill is in manufacturing phones, and not making products it will market directly to consumers. It has fallen into the trap that companies such as HTC, Sony Corp. (NYSE: SNE) and Google Inc.’s (NASDAQ: GOOG) Motorola have. Huawei wants to try to crack the unassailable lead held by Apple Inc. (NASDAQ: AAPL) and Samsung. And Huawei has no brand in the sector, which makes its decision to compete with the two leaders a risky move it cannot win.

From December 1, 2012 to May 31, 2013, Apple received between 4,000 and 5,000 requests from U.S. law enforcement for customer data. Between 9,000 and 10,000 accounts or devices were specified in those requests, which came from federal, state and local authorities and included both criminal investigations and national security matters. The most common form of request comes from police investigating robberies and other crimes, searching for missing children, trying to locate a patient with Alzheimer’s disease, or hoping to prevent a suicide.

Regardless of the circumstances, our Legal team conducts an evaluation of each request and, only if appropriate, we retrieve and deliver the narrowest possible set of information to the authorities. In fact, from time to time when we see inconsistencies or inaccuracies in a request, we will refuse to fulfill it.

Tech companies including Microsoft Corp. (NASDAQ: MSFT), Google Inc. (NASDAQ: GOOG) and Facebook Inc. (NASDAQ: FB) at first denied cooperation with the government in a huge effort by the NSA to track terrorism via examinations of vast amounts of data. After it came to light that hundreds if not thousands of requests had been made, managements of these companies said they would never violate the privacy of their customers. Then, each company began to back off those claims. Several admitted government requests. And then, each said it wanted to report to the public the nature and number of those queries.

Apple is another case in which customers might well ask why it took so long to admit to the customers the nature of requests that stretch back to last year. This type of problem has harmed relationships with customers at all large tech firms, and, if further revelations about what the government took from them come to light, could harm these relationships more.

Apple remarked:

We will continue to work hard to strike the right balance between fulfilling our legal responsibilities and protecting our customers’ privacy as they expect and deserve.

Not much comfort to Apple customers who believed information about them was absolutely safe.

Intel Corp. (NASDAQ: INTC) short interest fell 0.2% to 224.42 million shares. About 4.5% of Intel’s float is now short.

Advanced Micro Devices Inc. (NYSE: AMD) saw short interest rose 4.6% to 96.3 million shares, or 15.9% of the company’s total float.

Qualcomm Inc. (NASDAQ: QCOM) short interest fell 4% to 16.29 million shares, which represents 1% of the company’s float.

ARM Holdings PLC (NASDAQ: ARMH) saw a 21.8% drop in short interest to 3.18 million shares, which represents about 0.7% of the firm’s float.

Micron Technology Inc. (NASDAQ: MU) showed a rise of 10% in short interest to 76.43 million shares, or about 7.5% of Micron’s float.

SanDisk Corp. (NASDAQ: SNDK) saw short interest rise 1.6% to 7.59 million shares, or 3.1% of the company’s float.

Short interest in Broadcom Corp. (NASDAQ: BRCM) fell 10.8% to 8.02 million shares. That is 1.5% of the total float.

Marvell Technology Group Ltd. (NASDAQ: MRVL) posted a 23.8% decrease in short interest to 4.79 million shares, or about 1.2% of Marvell’s float.

Nvidia Corp. (NASDAQ: NVDA) short interest rose by a whopping 86.4% to 59.06 million shares, about 10.7% of the company’s float.

Texas Instruments Inc. (NASDAQ: TXN) saw short interest decline by 15.5% to 19.75 million shares, or 1.8% of the float.

Applied Materials Inc. (NASDAQ: AMAT) short interest fell 24.5% to 13.82 million shares, which is about 1.2% of the company’s float.

The Market Vectors Semiconductor ETF (NYSEMKT: SMH) showed a drop of 7.9% in short interest to 7.85 million shares.

Nvidia put up a recent high near $15 on May 21, and shares dropped to a two-week low on May 23. The shares closed at $14.17 last night and a further drop is not out of the question.

But how big a boost is this really? In a letter today, Sterne Agee’s analyst notes that while Intel is indeed increasing its focus on tablets and smartphones, the newest chip from the world’s largest chipmaker will not be available until late this year and will not be included in new products until the first half of next year.

Sterne Agee also points out that the newest chips will be selling at an average price of $20 to $50 each, compared with a $100 to $200 average selling price for the notebook/desktop chip. To make the situation even worse for Intel, the eight-inch tablet appears to be the market’s sweet spot and chips to power those devices may sell for even less.

While PC shipments are expected to remain flat, the Sterne Agee analyst continues to see a compound annual growth rate of around 35% for tablets through 2016 and 2017. However the significantly lower price point for eight-inch tablets urges caution on Intel.

Intel Corp. (NASDAQ: INTC) short interest fell 1% to 233.21 million shares. About 4.7% of Intel’s float is now short.

Advanced Micro Devices Inc. (NYSE: AMD) saw short interest fall by 6% to 96.06 million shares, or 15.9% of the company’s total float.

Qualcomm Inc. (NASDAQ: QCOM) short interest rose by 3.4% to 14.29 million shares, which represents 0.8% of the company’s float.

ARM Holdings PLC (NASDAQ: ARMH) saw a 5.9% rise in short interest to 3.46 million shares, which represents about 0.7% of the firm’s float.

Micron Technology Inc. (NASDAQ: MU) showed a decline of 22.4%% in short interest, to 66.32 million shares, or about 6.5% of Micron’s float.

SanDisk Corp. (NASDAQ: SNDK) saw short interest fall by 16.7% to 7.8 million shares, or 3.2% of the company’s float.

Short interest in Broadcom Corp. (NASDAQ: BRCM) rose by 1.5% to 7.46 million shares. That is 1.5% of the total float.

Marvell Technology Group Ltd. (NASDAQ: MRVL) posted a 2.4% increase in short interest, to 5.6 million shares, or about 1.4% of Marvell’s float.

Nvidia Corp. (NASDAQ: NVDA) short interest rose by 1.8% to 26.52 million shares, about 4.5% of the company’s float.

Texas Instruments Inc. (NASDAQ: TXN) saw short interest decline by 5.9% to 26.5 million shares, or 2.4% of the float.

Applied Materials Inc. (NASDAQ: AMAT) short interest rose by 1.8% to 18.95 million shares, which is about 1.6% of the company’s float.

The Market Vectors Semiconductor ETF (NYSEMKT: SMH) showed a drop of 3.8% in short interest to 9.34 million shares.

Shorts in Texas Instruments got squeezed by the company’s better-than-expected quarterly earnings report and the faint-hearted dropped their positions and likely went looking for a better play.

During the prior two-week period, short sellers added more than 15% to their positions in SanDisk. In the most recent report, more than 16% dropped their short in their short position in the stock. Their timing looks good; SanDisk hit a two-month bottom on May 1 and has been on the rise ever since.

Intel Corp. (NASDAQ: INTC) short interest fell 1.4% to 235.47 million shares. About 4.8% of Intel’s float is now short.

Advanced Micro Devices Inc. (NYSE: AMD) saw short interest rise by 10.6% to 102.23 million shares, or 16.9% of the company’s total float.

Qualcomm Inc. (NASDAQ: QCOM) short interest rose by 1.2% to 13.82 million shares, which represents 0.8% of the company’s float.

ARM Holdings PLC (NASDAQ: ARMH) saw an 8% decline in short interest to 3.27 million shares, which represents about 0.7% of the firm’s float.

Micron Technology Inc. (NASDAQ: MU) showed a rise of 9.9% in short interest, to 85.42 million shares, or about 8.4% of Micron’s float.

SanDisk Corp. (NASDAQ: SNDK) saw short interest rise by 15.5% to 9.36 million shares, or 3.9% of the company’s float.

Short interest in Broadcom Corp. (NASDAQ: BRCM) rose by 6.2% to 7.35 million shares. That is 1.4% of the total float.

Marvell Technology Group Ltd. (NASDAQ: MRVL) posted a 7.7% drop in short interest, to 5.26 million shares, or about 1.2% of Marvell’s float.

Nvidia Corp. (NASDAQ: NVDA) short interest rose by 1.8% to 26.52 million shares, about 4.5% of the company’s float.

Texas Instruments Inc. (NASDAQ: TXN) saw short interest increase by 23.2% to 28.17 million shares, or 2.6% of the float.

Applied Materials Inc. (NASDAQ: AMAT) short interest rose by 25.9% to 18.95 million shares, which is about 1.6% of the company’s float.

The Market Vectors Semiconductor ETF (NYSEMKT: SMH) showed a rise of 6.9% in short interest to 9.71 million shares.

Shorts piled back into Texas Instruments during this period, likely not expecting the stock to post a new high following its earnings report earlier this week.

A better short bet was Applied Materials. The maker of equipment used in chipmaking took a dive last week before recovering most of the loss this week. SanDisk’s swing was even larger in the past two weeks. Short interest in both these stocks should drop in the current two-week period.

The company’s net income of $362 million is 37% higher than last year’s net income of $265 million, and includes a tax benefit of $65 million as a result of the reinstatement of the federal research and development tax benefit earlier this year.

For the second quarter, TI expects revenue of $2.93 to $3.17 billion and EPS of $0.37 to $0.45. The consensus estimate calls for $3.04 billion in revenue and EPS of $0.38. For the full year, the consensus estimates call for $12.18 billion in revenue and EPS of $1.62.

TI expects second-quarter revenue related to its legacy wireless products to fall by about $60 million. The company had already announced the winding down of its legacy wireless business. TI plans to put more emphasis on the analog and embedded chip markets.

The company raised its annual dividend to $0.28, for a dividend yield of 3.3% and boosted its share buyback program by $5 billion in the first quarter.

Today’s report is not exciting, but it is stable. Shares won’t move much because the stock is fully valued and growth prospects are slim for the $40 billion chipmaker.

Shares are up about 0.6% at $35.00 in after-hours trading today. The 52-week range is $26.06 to $35.92. Prior to today’s release Thomson/Reuters had a consensus price target of around $34.70 on the company’s shares.

We also chose to look at how the Market Vectors Semiconductor ETF (NYSEMKT: SMH) has held up.

Intel Corp. (NASDAQ: INTC) short interest rose 2.1% to 238.76 million shares. About 4.8% of Intel’s float is now short.

Advanced Micro Devices Inc. (NYSE: AMD) saw short interest fall by 3.3% to 92.44 million shares, or 15.3% of the company’s total float.

Qualcomm Inc. (NASDAQ: QCOM) short interest declined by 8.2% to 13.66 million shares, which represents 0.8% of the company’s float.

ARM Holdings PLC (NASDAQ: ARMH) saw a 15.6% rise in short interest to 3.55 million shares, which represents about 0.8% of the firm’s float.

Micron Technology Inc. (NASDAQ: MU) showed a drop of 7% in short interest, to 77.7 million shares, or about 7.7% of Micron’s float.

SanDisk Corp. (NASDAQ: SNDK) saw short interest rise by 2.7% to 8.09 million shares, or 3.4% of the company’s float.

Short interest in Broadcom Corp. (NASDAQ: BRCM) fell by 14.5% to 6.93 million shares. That is 1.3% of the total float.

Marvell Technology Group Ltd. (NASDAQ: MRVL) posted a 7.7% drop in short interest, to 5.26 million shares, or about 1.2% of Marvell’s float.

Nvidia Corp. (NASDAQ: NVDA) short interest rose by 20.6% to 26.06 million shares, about 4.4% of the company’s float.

Texas Instruments Inc. (NASDAQ: TXN) saw short interest drop by 14.7% to 22.86 million shares, or 2.1% of the float.

Applied Materials Inc. (NASDAQ: AMAT) short interest dropped by 4.2% to 15.05 million shares, which is about 1.3% of the company’s float.

The Market Vectors Semiconductor ETF (NYSEMKT: SMH) showed a rise of 22% in short interest to 9.08 million shares.

The short bets in this two-week period seem to favor Nvidia and ARM, while appearing to lose interest in Texas Instruments and Broadcom. Qualcomm, the leader in mobile device chips, has strengthened its position in the sector and the short sellers are betting against these competitors. The recent reports that AMD will provide chips for the new Xbox should have an impact on the next short interest report.

Intel Corp. (NASDAQ: INTC) short interest rose 8.3% to 233.9 million shares. About 4.7% of Intel’s float is now short.

Advanced Micro Devices Inc. (NYSE: AMD) saw short interest rise by 11.4% to 95.55 million shares, or 15.8% of the company’s total float.

Qualcomm Inc. (NASDAQ: QCOM) short interest rose 6.3% to 14.88 million shares, which represents 0.9% of the company’s float.

ARM Holdings PLC (NASDAQ: ARMH) saw a 42.3% drop in short interest to 3.07 million shares, which is about 0.7% of the firm’s float.

Micron Technology Inc. (NASDAQ: MU) showed a rise of 14.0% in short interest to 83.5 million shares, or about 8.2% of Micron’s float.

SanDisk Corp. (NASDAQ: SNDK) saw short interest rise by 11.2% to 7.88 million shares, or 3.3% of the company’s float.

Short interest in Broadcom Corp. (NASDAQ: BRCM) fell by 1.9% to 8.1 million shares. That is 1.6% of the total float.

Marvell Technology Group Ltd. (NASDAQ: MRVL) posted a 7.7% drop in short interest to 5.7 million shares, or about 1.3% of Marvell’s float.

Nvidia Corp. (NASDAQ: NVDA) short interest rose by 30.7% to 21.61 million shares, about 3.6% of the company’s float.

Texas Instruments Inc. (NASDAQ: TXN) saw short interest rise 1.6% to 26.79 million shares, or 2.4% of the float.

Applied Materials Inc. (NASDAQ: AMAT) short interest dropped by 8.4% to 15.71 million shares, which is about 1.3% of the company’s float.

The Market Vectors Semiconductor ETF (NYSEMKT: SMH) showed a rise of 17.7% in short interest to 7.44 million shares.

The sharp drop in short interest in ARM Holdings follows on forecasts for a sharp rise in demand for mobile devices. The company’s share of the embedded processor market is also safe, and a new move into low-power servers is beginning to pay off. The company’s ability to execute on its plans is proving to be too much for many short sellers.

In their research report, the Deutsche Bank analysts note that they have observed that investors have afforded large cap analog stocks a safety/early-cycle-driven valuation premium that has reached historic highs. While they admire the quality of the analog names, they expect their premium to lessen as data points more rapidly improve for digital/mixed signal stocks that currently trade at a relative discount but have positive second half of the year seasonality, co-specific product cycles and/or true cyclical leverage.

Simply stated, they feel that the valuation multiples for large-cap analog stocks, specifically Analog Devices Inc. (NASDAQ: ADI), Linear Technology Corp. (NASDAQ: LLTC), Maxim Integrated Products Inc. (NASDAQ: MXIM) and Texas Instruments Inc. (NASDAQ: TXN) have expanded well above historical averages. The analysts also point out that semiconductor investors were last positioned in a similarly “safe” manner during the depths of the Great Recession in early 2009, with that peak soon being followed by the analog premium compressing over subsequent quarters from a 55% premium to nearly a 55% discount. That translates to a big sell signal.

So what stocks are ripe for the buying in this classic sector rotation? Here is the list of the top names from Deutsche Bank:

Mega cap giant Intel Corp. (NASDAQ: INTC) leads off the list. A laggard for years, the stock really has become a value name. It sports a solid 4.20% dividend and a possible departure of the CEO. The Thomson/First Call consensus price objective for Intel is $23.

In the large cap arena, the top pick is Wall St. favorite Broadcom Corp. (NASDAQ: BRCM), with its diverse product range that focuses on voice, video, data and multimedia connectivity for home, office and mobile environments. The Wall St. price target is $40 for Broadcom.

In the mid cap area there are two names for investors to look at. Avago Technologies Ltd. (NASDAQ: AVGO) focuses on chips for the optical sector and just raised its dividend. The consensus price target for the stock is $42.

Based in the Netherlands, NXP Semiconductors N.V. (NASDAQ: NXPI) is also a mid cap favorite. The consensus price target for this mixed signal chip leader is $36.

In the small cap space, the Deutsche Bank research team has four names that investors should look at.

Fairchild Semiconductor International Inc. (NYSE: FCS) has three strong segments to power earnings. The mobile computing, power conversion and automotive divisions drive a diversified revenue stream for this small cap leader. The consensus price target is $18, which would represent a 25% move from current trading levels.

ON Semiconductor Corp. (NASDAQ: ONNN) also makes the small cap list of stocks to buy. It was upgraded yesterday to Buy from Neutral at Goldman Sachs (NYSE: GS) with a price target of $11. The consensus target is $10.

Fabless semiconductor company Monolithic Power Systems Inc. (NASDAQ: MPWR) also makes the grade. The consensus estimate for the stock is $26.

Rounding out the top semiconductor stocks to buy is Silicon Motion Technology Corp. (NASDAQ: SIMO). Based in Taiwan, this fabless semiconductor company designs, develops and supplies a portfolio of multimedia data processing, storage and transfer solutions primarily for consumer electronics. The consensus price target is $20. This could be a huge winner for investors as the price target represents a move of more than 50% from current levels.

The path is clear for the holders of analog semiconductor stocks. If the analysts are right in their rotation call, it is time to sell the analog names and rotate into better value. This is an excellent way to capture profits, but still have semiconductor stocks as a part of a diversified portfolio.