Semiconductor stocks have been on fire in 2017, and Q2 earnings season could be another good one for investors. However, with stock valuations already extremely stretched, investors may need to be selective about which semi stocks they own.

In a new earnings preview out on Tuesday, Barclays analyst Blayne Curtis said he expects a positive overall Q2 earnings season for semiconductor stocks but warned investors that some popular names may underperform.

“The Semiconductor group continues to grind higher, and we expect a 6th consecutive positive earnings period as most end markets remain healthy and we see largely better results/guidance,” Curtis wrote.

Related Link: Barclays Downgrades Advanced Micro Devices, Sees 'Little Evidence' Of Epyc Share Gains

Despite his overall optimism, Curtis downgraded Advanced Micro Devices, Inc. (NASDAQ: AMD) and Cirrus Logic, Inc. (NASDAQ: CRUS) from Equal-Weight to Underweight and maintained an Underweight rating on Integrated Device Technology Inc (NASDAQ: IDTI) as well.

But even though some stocks have become overheated at this point, Barclays still sees buying opportunities ahead of Q2 earnings season as well. The firm upgraded Cavium Inc (NASDAQ: CAVM) and Cypress Semiconductor Corporation (NASDAQ: CY) from Equal-Weight to Overweight. Curtis especially likes Cavium’s recent business trends, including new product launches and QLCC share gains.

For Cypress, ne noted the stock’s relatively appealing valuation and its high likelihood of a major Apple Inc. (NASDAQ: AAPL) win.

In addition to Cypress and Cavium, Barclays maintains Overweight ratings on the following semi stocks:

• Intel Corporation (NASDAQ: INTC)

• MACOM Technology Solutions Holdings Inc (NASDAQ: MTSI)

• Quantenna Communications Inc (NASDAQ: QTNA)

• Skyworks Solutions Inc (NASDAQ: SWKS)

Semiconductor earnings season kicks off on July 20 when Skyworks is expected to report earnings after the market close.

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