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Semiconductor analysts at last week's Churchill Club's 12th annual Semiconductor Outlook dinner insist that despite a soft outlook for the sector, there is money to be made by seeking out companies in good product cycles. Barron's Eric Savitz lets us in on the picks of some industry experts:

• Christopher Danely of JPMorgan likes Microchip Technology (MCHP), which stands to do well against rival "stiffs" STMicro (STM) and Freescale (FSL). AMD (AMD), he says, "is trading as if it's going out of business," and could double from its present $7.43.

Microchip Technology (MCHP) shares are trading lower this morning after Goldman Sachs analyst Craig Hattenbach cut his rating on the stock to Neutral from Buy, asserting that “a continued turnaround in the company’s business is already reflected in Microchip’s premium valuation.”

Hattenbach notes that the stock is up 36% from its January lows, and trades at a 15% premium to its peers. Additional multiple expansion will be “difficult” given the company “is reaching the tail end of margin expansion,” he says.

What’s the outlook for chip stocks?

That’s the question at issue tonight at the 12th annual Churchill Club Semiconductor Forecast dinner at the Hyatt in Santa Clara. The lineup is a good one:

• Bill Tai, general partner of Charles River Ventures, is the moderator.
• Christopher Danely, analyst at J.P. Morgan.
• Dan Niles, CEO at Neuberger Berman Technology Management.
• Mark Lipacis, analyst, Morgan Stanley.
• Sangeeth Peruri, managing director and portfolio manager, J.&W. Seligman.

JP Morgan chip analyst Christopher Danely has taken the podium to introduce Rich Templeton, head of chip maker Texas Instruments (TXN).