What Boosted Broadcom’s Profits in Fiscal 4Q17?
Broadcom also gave an upbeat guidance for its fiscal 1Q18. It expects to generate revenue in the range of $5.22 billion–$5.37 billion in fiscal 1Q18.
Many economists are not optimistic about the tax bill because they believe it is poorly timed.
While House Republicans proposed to cap the interest expense deduction at 30% of EBITDA, the Senate’s version amended this provision to 30% of EBIT.
In its initial version of the tax reform bill, House Republicans proposed to eliminate the corporate AMT, but the Senate’s version brought back the ATM.
Under the Senate’s proposal, companies would be allowed to expense 100% of their capital spending for the next five years.
The US currently uses a worldwide tax system, in which US-based companies are liable to pay taxes on income earned anywhere in the world.
The 20% corporate tax rate has been making the headlines, even though it’s still just a proposal. But talks over the tax bill are heating up.
What many forget is that the Obama administration wanted to reduce the maximum corporate tax rate to 28%, but it did not specify the tax breaks.
The Senate’s version of the tax bill brings five major amendments that would impact the technology (QQQ) sector.
The Senate amendments to reduce the total cost of the tax bill after analysis showed that it would add $1.4 trillion to the budget deficit over ten years.
The US Senate passed its version of the new tax reform bill on December 2, 2017, after making various amendments to the original House version of the bill.
US tax reform is now progressing quickly, and the technology industry (QQQ), of course, is monitoring the developments closely.
The AI and deep learning markets are currently in their growth cycles, and NVIDIA is leading in this space with its Tesla GPUs.
After deducting the $34 million in capital spending, AMD’s FCF (free cash flow) stood at $32 million.
AMD lost significant server CPU market share to Intel (INTC) when the latter launched Bay Trail-M and Bay Trail-D processors at competitive prices in 2014.
AMD’s GPU shipments increased 7.6% sequentially in 3Q17. Its discrete desktop GPU shipments increased 16.1%, and its discrete notebook GPU shipments increased 5.2%.
Advanced Micro Devices’ (AMD) EESC (Enterprise, Embedded, and Semi-Custom) segment is undergoing a slowdown as its major semi-custom business for game consoles matures.
Between 2012 and 2016, AMD’s revenues fell more than 20% as it lost significant market share in the PC space.
Moreover, Intel plans to launch its 10nm CannonLake processors first in laptops by the end of 2018, giving competition to AMD’s 14nm Ryzen Mobile.
Research and Markets expects the blockchain market to grow at a CAGR of 61% to over $2.3 billion by 2021.