Shares of semiconductor maker Semtech Corp. dropped nearly 7 percent Wednesday after several major companies in the sector were downgraded by Banc of America Securities. The investment firm said it was taking a “more cautions stance” on the semiconductor industry for 2008.

Analyst Sumit Dhanda said in a research note to investors that slightly higher inventory levels and weaker sales combined with the specter of a weakening economy “renders the fundamental picture unfavorable for the group.”

Shares in Camarillo-based Semtech lost 6.8 percent to $14.46. Industry leader Intel Corp. also was downgraded.

Semtech was downgraded by several investment firms in November after the company posted strong fiscal third quarter earnings but said its outlook for 2008 was soft.