Investor sentiment on semiconductor stocks have been low across the summer, however recent data from analysts reveals the trend may be turning.

Andrew Garthwaite, head global strategist at Credit Suisse, released bullish notes on technology shares, saying that technology stocks globally are trading below historical averages.

He find that tech shares globally are trading 8 percent below their historic average valuation on an enterprise value/sales basis and 17 percent below average on a price/book basis.

Semiconductors, he says, are 15 percent undervalued; software, he says, is marginally cheap, however notes that personal-computers look expensive.

Garthwiate notes that capital spending as a percentage of sales for tech stocks is 27% below its historic norms; the inventory cucle is now much less volatile, he says, and “asset turns have structurally improved in all areas apart from PCs for the past four years.”

He also says that new products make the industry less dependent on the economic cycle.

Andy Griffin of Merrill Lynch also expressed more positive outlook, saying sentiment improved in all regions.

After the very weak August result, he said, the market cap weighted average increased to -1%, the best result since May 2006. All regions except the US and global mandates remained underweight technology, while the US returned to a neutral stance and global a small overweight position.