More From Puja Tayal
Micron’s Ability to Return to Profit Hindered by Market Forces
All market forces are in favor of Micron Technology (MU) and are likely to drive the company’s revenue up 10% sequentially in fiscal 4Q16.
Why Competition Is Heating up for NVIDIA in the AI Space
Many companies are shifting their focus toward AI, which has been increasing the competition for NVIDIA (NVDA).
What Do Analysts Think about AMD Stock?
AMD stock has a consensus rating of “hold” and an annual price target of $2.43. The most bullish estimate is $5.00. The most bearish estimate is $1.50.
NVIDIA Stock Rose 9% despite Lower Revenues in Q4
On February 14, NVIDIA stock rose as high as 9% in the after-hours session. The company expects strong growth in the second half of 2019.
A Look at Cypress Semiconductor’s Debt Repayment Strategy
Cypress Semiconductor (CY) is looking to increase its cash flow and use the excess cash to repay its debt.
Where AMD Stands Today in the Tech Transition
Calendar 2017 was a turnaround year for Advanced Micro Devices (AMD) as it moved from losses to profits.
What’s Caused Avago-Broadcom to Outperform Its Peers in 2016?
Fiscal 3Q16 will be the first quarter in which investors come to know the growth potential of Avago-Broadcom as a combined entity.
US–China Tariffs Could Hurt US Companies and Consumers
Micron (MU) can’t pass on the cost of these tariffs to customers, as it operates in a price-sensitive memory chip market.
What Can Go Wrong for Intel in Fiscal 2016?
Intel gained a lion’s share in the PC and sever space. However, IBM’s Power Architecture may challenge Intel’s dominance in the server market in the future.
How Broadcom’s Acquisitions Could Improve Its Profitability
Broadcom’s profitability In the previous part of this series, we saw that Broadcom (AVGO) is likely to witness seasonal revenue decline as demand in its wireless segment, its second largest, falls. While revenue depends significantly on external factors such as customer demand, the pricing environment, and competition, profitability depends on internal factors such as cost control and product […]
Who’s Worried about Intel’s Debt Levels?
Intel acquired Mobileye for an enterprise value of $14.7 billion. It funded this by raising $7.5 billion in new debt and by selling non-core assets and equity.
Industrial and Auto: Texas Instruments’ Future Growth Drivers
Texas Instruments (TXN) is the bellwether of the economy since it caters to most major end markets.
Micron’s 3D XPoint Launch—and Where It Stands Now
In July 2015, Micron and Intel companies announced 3D XPoint, their revolutionary non-volatile technology with cross-point structure.
Fiscal 3Q17: An Activity-Filled Quarter for Nvidia
Nvidia (NVDA) took the stage in the past three months by launching a series of Pascal GPUs aimed at high-end and mainstream customers. Nvidia’s fiscal 3Q17 earnings are expected to be released in the first week of November.
What Pushed Applied Materials’ Services Revenue So High?
Applied Materials provides services that help manufacturers maintain and optimize equipment. AMAT reports earnings from these services in its AGS segment.
Execution of the Qualcomm-NXP Merger: A Complex Task
While Qualcomm has bought into the future with the NXP merger, its journey toward automotive growth may not be smooth.
Mobile Business Hurts Intel’s Profits
Intel’s mobile computing group loss kept widening as the company sold its Atom processors at a discounted price while its operating expenses rose due to heavy spending on R&D.
How US-China Trade Talks Are Progressing
Previously in this series, we saw that after seven months of the trade war and failed negotiations, the United States and China (FXI) are finally showing some concrete commitments.
Lattice Semiconductor’s Earnings Hit by Weaker Smartphone Sales
On a non-GAAP (generally accepted accounting principles) basis, Lattice Semiconductor’s revenue fell 8% quarter-over-quarter to $101.3 million in fiscal 4Q15.
What Should Investors Expect from Qualcomm’s Fiscal 3Q16 Earnings?
Qualcomm (QCOM) is expected to report slightly improved revenue in fiscal 3Q16 as the design wins for its Snapdragon 820 reflect in the earnings. In this series, we’ll look at factors that could be reflected in Qualcomm’s fiscal 3Q16 earnings.
What Moves Do Analysts Recommend on Marvell’s Stock?
Marvell is likely to be a potential acquisition target with an enterprise value of $2.6 billion, a cash reserve of $2 billion, and zero debt.
Intel’s Revised Fiscal 2017 Revenue Guidance Revives Investor Confidence
At ~$60 billion in annual revenues, Intel (INTC) has grown to become the world’s largest semiconductor company.
What Micron Believes Will Drive DRAM Demand Going Forward
Micron expects DRAM demand to grow at a CAGR (compounded annual growth rate) of 20%–25% between 2016 and 2019, driven by migration to advanced technology.
Which Segment Will Drive AMD’s Growth in Fiscal 4Q15?
The gaming console market is the key growth driver for AMD. It has an upper hand over NVIDIA (NVDA) in this segment through its application processing unit.
NVIDIA Expands Its Tegra Business
NVIDIA (NVDA), which earns more than 80% of its revenue from GPUs (graphics processing units), is expanding the application of these GPUs in verticals beyond gaming.
Understanding AMD’s Strategy to Improve Cash and Profits
Advanced Micro Devices (AMD) is looking to grow margins by targeting enterprise customers and gamers in the PC space through its new Polaris GPU.
Micron Stock Falls on Weak First-Quarter Earnings and Guidance
On December 18, pure-play memory chip maker Micron Technology (MU) reported its fiscal 2019 first-quarter earnings after the market close.
Why Maxim Posted Strong Guidance for Fiscal 3Q16
As seasonal effects fade away, Maxim Integrated (MXIM) expects to report stronger results in fiscal 3Q16 than it did in fiscal 2Q16.
Why Analysts Revised Micron’s Earnings Estimate for Fiscal 2018
Micron’s PE ratio For the past two to three months, many analysts have been touting Micron Technology (MU) as a cheap stock at a forward PE (price-to-earnings) ratio of 6.0x. Micron’s PE ratio is well below the semiconductor industry’s (SMH) average PE ratio of 23.4x and the S&P 500’s (SPY) average PE ratio of 21.5x. […]
How Acquiring NXP Could Impact Qualcomm’s Balance Sheet
Acquisition a viable option for Qualcomm In this series, we’ve seen that Qualcomm (QCOM) is facing several headwinds in a slowing smartphone market. Despite this, it has strong cash flows due to strong profits from its licensing business. The company has been looking to diversify into the adjacent IoT (Internet of Things) and automotive markets […]
5G Technology: The Main Driver of Qualcomm and Apple’s Settlement
Apple (AAPL) is the second-largest handset maker in the world after Samsung (SSNLF), and it earns more than 60% of its revenue from iPhones.
How Being Apple’s Only Foundry Partner Works in TXN’s Favor
For fiscal 3Q16, Texas Instruments (TXN) expects to report earnings per share in the range of $0.81–$0.91. This EPS range is higher than the $0.73 reported in fiscal 2Q16 and is in line with the analyst estimate of $0.86.
What’s All the Fuss about Apple’s iPhone 8?
Since 2017 marks the tenth anniversary of the iPhone, analysts and customers are expecting significant technology improvements in the iPhone 8.
Apple Fires Back against Qualcomm in Europe
Qualcomm (QCOM) litigated against Apple (AAPL) in China to force Apple to negotiate licensing terms. Apple isn’t resting on its laurels, as it has retaliated against Qualcomm in Europe (IEV).
Slowing PC Shipments Hit Intel’s Earnings
As the PC demand slowed, Intel started reducing its exposure in the CCG segment.
Micron Banks on 3D XPoint to Boost Its Future Growth
Micron Technology (MU) forecasts that 16% of the mainstream server market would be equipped with 3D XPoint by 2020.
What Converted AMD’s Revenue Declines into Revenue Growth?
AMD reduced its R&D (research and development) expense from $1.4 billion in fiscal 2011 to $947 million in fiscal 2015.
What Are Broadcom’s Plans for Its Enterprise Storage Business?
Broadcom’s latest acquisition of Brocade should double the size of its Enterprise Storage segment, which currently accounts for 13% of its revenue.
ADI’s Plan for a High Gross Margin in Slow Quarters
Analog Devices’ fiscal 1Q17 revenues will likely see seasonal declines, and this seasonality is something that it can’t escape.
Understanding Micron through Its Financial Stability
The financial stability of a company is determined by understanding its debt level and its capability to meet long-term and short-term debt obligations.
What Does a Possible Licensing Deal with AMD Mean for Intel?
While NVIDIA was never a direct competitor to Intel, AMD is Intel’s only competitor in the data center and PC processor market.
What Opportunities Does Deep Learning Offer NVIDIA?
Stages of deep learning In the previous part of this series, we saw that GPU[1.graphics processing unit]-accelerated computing is helping supercomputers solve many complex problems efficiently. The cost and time savings brought by GPUs have encouraged many cloud companies to use these chips for their deep learning tasks. Deep learning happens in two stages. The […]
Intel on Track to Report Record Earnings in Fiscal 2018
Intel has partnered with China’s Internet giant Baidu (BIDU) to set up an AI and 5G innovation lab focused on converged edge and cloud services.
How Cypress’s Business Transition Revolves around IoT
The automotive and industrial industries are the fastest growing verticals of IoT among several others, including medical, wearables, and appliances.
Reviewing What Likely Drove NXP’s 3Q16 Revenue
NXP caters to a broad market, including the automotive, communications infrastructure, mobile, embedded device, industrial, and secure payment spaces.
How GPU Stocks Have Outperformed Semiconductor Stocks
GPU (graphic processing unit) providers NVIDIA and Advanced Micro Devices (AMD) have outperformed other semiconductor stocks.
Micron Works to Improve Its Compute and Networking Revenue
Micron Technology (MU) serves four major market segments: Compute and Networking, Mobile, Storage, and Embedded.
Can Micron Stock Continue to Outperform the Market in 2017?
Micron stock has risen 154.0% in the last 12 months, hitting a new 52-week high of $32.93 in June 2017.
Prolonged Stock Consolidation Is Bad for AMD
AMD stock has consolidated in 2017 after year-long growth in 2016. The stock price fell even though the company’s fundamentals improved.
How Will Micron Use Its Cash Reserves?
As of September 3, 2015, Micron had $5.6 billion of cash and marketable investments.
Where NVIDIA’s Margins Stand next to Those of Intel and AMD
NVIDIA’s profit margins NVIDIA (NVDA) has been increasing its revenue while controlling its expenses, resulting in improved profitability and a high free cash flow of up to 20% of its total revenues. Gross margin NVIDIA’s non-GAAP (generally accepted accounting principles) gross margin fell 90 basis points from 59.7% in fiscal 1Q18 to 58.6% in fiscal 2Q18 […]
How Intel’s Restructuring Might Impact Profitability in 2017
Intel’s non-GAAP gross margin was almost flat at 63.2% in fiscal 2016. The company expects the margin to remain flat at around 63.0% in fiscal 2017.
How Things Are Going for Intel in the Memory Market
Intel (INTC) is expanding its data-centric business beyond data centers into the IoT (Internet of Things), 5G, FPGAs (field-programmable gate arrays), and memory.
What Could Drive NVIDIA’s GeForce Unit Sales
Growth opportunities in the gaming market NVIDIA’s (NVDA) GeForce business unit has a history of strong growth. The company expects the growth to continue in coming years as the gaming market evolves with the increasing popularity of eSports, AAA games, gaming notebooks, and VR (virtual reality). At NVIDIA’s 2017 Investor Day, GeForce senior vice president […]
Tough Sledding for AMD Stock since 2012
Intel owns more than 99% of the server chip market. AMD is looking to make inroads in this market with the new x86 Zen architecture, which is expected to be competitive with Intel.
Does Nvidia Have Sufficient Cash to Fund Its Technology Roadmap?
For fiscal 3Q17, Nvidia (NVDA) expects to use $35 million–$45 million in capital expenditure.
When Could AMD’s Losses Turn to Profit?
AMD slips back to losses in fiscal 1Q17 Advanced Micro Devices (AMD) reported a 1% sequential revenue decline and its gross margin expanded between fiscal 1Q16 and fiscal 1Q17. However, the company slipped back to operating losses in fiscal 1Q17 after reporting operating profits in fiscal 4Q16. AMD’s profits are largely driven by volume sales, […]
How Is High Leverage Impacting NXPI’s Financial Flexibility?
NXP Semiconductors (NXPI) is expected to report FCF of over $610 million in 4Q16 as its operating margin improves.
What Will Drive NetApp’s Revenue in the Future?
Let’s look at the key growth drivers of NetApp’s revenue. The company earns ~56% of its revenue by selling data storage hardware and ~44% from services.
What Price Ratios Say about Micron’s Stock Valuation
Micron is currently trading at a PE ratio of 54.6x, but the EPS estimates for the next year have put its forward PE ratio at 6.0x.
Is NVIDIA Stock’s Valuation Attractive to Investors?
NVIDIA (NVDA) and Advanced Micro Devices (AMD) have high ROEs (return on equity) of 52.2% and 43.3%, respectively.
A Look at Intel’s Efforts in the Artificial Intelligence Space
Artificial intelligence opportunities and Intel So far, we’ve discussed how Intel (INTC) may be slowly losing ground in the process technology space. However, this does not deter the company from making R&D (research and development) efforts in the AI (artificial intelligence) space. AI is the future of technology—everything from home appliances to industrial machines could […]
Apple Stock Fell Over 5% on iPhone Headwinds
China retaliated against the US’s tariff hike on Chinese imports by announcing 5% to 25% tariffs on $60 billion worth of US imports.
Will Micron and Samsung Continue to See High DRAM Prices in 2018?
Micron Technology (MU) is moving fast in both the DRAM (dynamic random access memory) and NAND (negative AND) space.
Analysts Are Saying This about Nvidia’s Valuation
Nvidia reported exponential growth in earnings in fiscal 2017. But analysts believe that this is already factored in Nvidia’s stock price.
What Are Samsung’s Capital Spending Plans for Fiscal 2016?
A TrendForce report states that Samsung is planning to reduce its fiscal 2016 capital expenditure by about 15% YoY (year-over-year) to $11.5 billion.
Nvidia’s Growth Catalysts: Stronger Than Stock Market Volatility?
Nvidia (NVDA) was the second-fastest-growing semiconductor stock in 2017, returning more than 80%.
Will Applied Materials’ High Revenue Continue in Fiscal 2017?
Applied Materials (AMAT) is currently at the peak of its cycle where it is reporting strong growth from almost all segments.
Qualcomm’s Shares Fall as EU Launches Antitrust Charges
Qualcomm (QCOM) has been hit by another antitrust accusation, which led the company’s shares to fall by 5.6% to close at $49.48 on December 8, 2015.
Micron’s Mobile Business Gains Growth Momentum in Fiscal 2017
Micron’s Mobile Business Unit revenues rose 4% sequentially and 76% year-over-year to a record $1.2 billion in fiscal 4Q17, in line with expectations of $1.18 billion in revenues.
What Are Analysts Saying about iPhone 7 Demand?
Many analysts aren’t very optimistic about the iPhone 7 demand. Apple is facing technology stagnation in the smartphone market, which has led to longer upgrade cycles.
Intel Responds to Competition from AMD with Coffee Lake
Responding to increasing competition, Intel is set to launch the eighth-generation Coffee Lake Core i7-8700K processor.
How Might Micron’s NAND Business Perform in Fiscal 2018?
Micron was mainly focused on DRAM (dynamic random-access memory) until 2016. However, the appointment of Sanjay Mehrotra as Micron’s CEO brought renewed focus on NAND.
Say It Isn’t So! Qualcomm’s Results Could Disappoint
Qualcomm’s fiscal 4Q16 earnings preview In the previous part of this series, we discussed Qualcomm (QCOM) being hit by strong competition from MediaTek and Intel (INTC) in fiscal 4Q16. After reporting its first YoY (year-over-year) revenue growth in six quarters in fiscal 3Q16, the company is set to report flat or lower revenue growth in […]
Texas Instruments Continues to Enjoy Strong Cash Flow
Texas Instruments has returned almost 100% of its FCF to shareholders in the last 12 months—it earned FCF of $5.7 billion and returned $5.6 billion to shareholders.
How Is Marvell Looking to Fuel Its Growth Going Forward?
Marvell is currently sampling a variety of products with customers worldwide. Its new product portfolio is expected to increase its revenue in fiscal 2017.
Here’s What Triggered China’s Price Probe into Micron and Others
Over the last two years, DRAM prices have more than doubled due to growing demand for high-performance devices.
AMD’s Third-Quarter Earnings Hit by Weak Cryptocurrency Demand
In the third quarter, AMD’s revenue rose 4.4% YoY (year-over-year) but fell 6.3% sequentially to $1.65 billion.
What Does Intel Expect for Fiscal 2016?
By revenue, Intel (INTC) is the world’s largest semiconductor company. It expects to report annual sales growth between the “mid-single digits” in fiscal 2016.
What’s Intel’s Strategy to Tap Into the 5G Revolution?
As Intel refocuses on the connected world, it’s letting go of products that aren’t in sync with its new strategy.
Intel Responds to Competition from AMD
Advanced Micro Devices (AMD) is launching its complete line of Ryzen CPUs (central processing units) in 2018.
What Could Drive Cypress’s Revenues in Fiscal 2017?
Cypress entered 2Q17 with over 90% orders booked. Its book-to-bill ratio increased from ~1.1 to 1.3 due to supply constraints in the semiconductor market.
Who Is behind the Legal Attacks on Qualcomm?
Qualcomm (QCOM) and some analysts believe that Apple is behind this legal attack, as the handset maker is a key example in all three lawsuits.
What Can Investors Expect from Qualcomm’s 1Q16 Earnings?
According to the Qualcomm’s fiscal 1Q16 guidance, non-GAAP EPS is expected to be in the range of $0.80–$0.90, lower than the fiscal 4Q15 EPS of $0.91.
MU Belongs in the Top 5 Semiconductor Stocks, and Here’s Why
The stocks that have the largest market capitalization or market cap generally trade in large volumes but may not be the highest-traded stocks.
Qualcomm’s Earnings Take a Hit from Legal Issues
As the smartphone industry faces a slowdown in growth, Qualcomm (QCOM) is in the middle of several legal and shareholder battles.
What to Expect from Intel’s 1Q16 Earnings
Intel (INTC), a leader in the semiconductor space, is due to announce its fiscal 1Q16 earnings on April 19, 2016.
Why Analysts Are Happy about Cypress’s Gross Margin Strategy
Some analysts say that most of Cypress’s automotive and industrial products are in the design process and would take time to materialize into revenue.
Design Wins Increase Micron’s Compute and Networking Revenue
CNBU (Compute and Networking Business Unit) is Micron’s largest business segment, accounting for 38% of the company’s revenue in fiscal 3Q16.
Will Current Headwinds Impact Qualcomm’s Shareholder Returns?
If Qualcomm is unable to overcome the legal headwinds around its licensing business, the completion of its NXP Semiconductors acquisition could be at risk.
What’s Driving Growth in Intel’s Data-Centric Business?
Intel (INTC) is reaping the benefits of its transition to a data-centric business.
NVIDIA Broadens Software Stack to Maximize Data Center Returns
NVIDIA (NVDA) has differentiated itself from other computing accelerator companies like Xilinx (XLNX) and Intel’s (INTC) Altera by transitioning to being an accelerated computing platform company.
Qualcomm Is Set to Meet Its Fiscal 2019 EPS Target
Qualcomm’s profitability is being affected by licensing and patent lawsuits from Apple and its increasing investments in noncore assets.
Technology Implications of Intel’s 5G Decision
Intel (INTC) decided to quit its efforts to make 5G modems for smartphones since they’re not profitable enough.
Intel’s Revenue Guidance Suffers Setback due to Demand Weakness
In the first quarter, Intel (INTC) saw demand pressure in the data center market as its customers, especially in China (FXI), shifted to absorbing the excess capacity they purchased in the first nine months of 2018.
IoT Attracts Telecom, Semiconductor, and Software Companies
Gartner expects that there will be 20.8 billion IoT devices by 2020. IoT devices represent a direct growth opportunity for the semiconductor industry.
What Chip Ban Means to Huawei and US Chip Suppliers
The United States is the biggest supplier and China is the biggest consumer of semiconductors in the world.
Intel Stock Rises over 2% on Morgan Stanley Upgrade
Intel stock rose over 2% on February 22 after Morgan Stanley analyst Joseph Moore upgraded the stock to overweight and raised its price target from $55 to $64.
Broadcom Restructures CA Technologies’ Business Model
Broadcom (AVGO) has been growing its cash flow by acquiring companies that are market leaders with high cash flow.
How Advanced Manufacturing Nodes Impact Intel’s Gross Margin
Intel is ramping up production on the 10nm node that would weigh on its fiscal Q4 2018 gross margin.