Analog Devices Inc
Analog Devices Plans to Acquire Maxim, Stock Rises
Analog Devices (NASDAQ:ADI) stock rose 2.6% in pre-market trading at 7:33 AM ET today. The company agreed to acquire Maxim Integrated Products.
Semi Stocks Fall as US Bans Eight Chinese Tech Firms
Today, the US added 28 Chinese organizations to its Entity List, two weeks before its trade talks with China. The US ban sent the S&P 500 Index down 1.27%.
Analog Devices Stock Surges on Goldman Sachs’ Positive Outlook
Shares of semiconductor company Analog Devices (ADI) rose 5.8% on June 10 to close trading at $106.66 per share.
US-China Trade War Impacts Analog Chipmakers’ Guidance
Analog chipmakers have exposure to almost all end markets including industrial, automotive, communications, and consumer markets.
Analog Devices Beats Q2 Earnings Estimates and Outperforms Peers
Today, Analog Devices (ADI) reported its second-quarter earnings.
Texas Instruments’ Profit Margins Continue to Beat Peers
Texas Instruments (TXN) manufactures analog chips that are built on old technology nodes that have already been paid off.
Semiconductor Stocks Hit New 52-Week Highs ahead of Earnings
The first-quarter semiconductor earnings season has begun, and the stock market is showing bullish sentiment as investors buy ahead of earnings releases.
Analog Devices Stock Is Trading Close to 52-Week High
The stock of semiconductor (SMH) company Analog Devices (ADI) has generated returns of 21% in the last 12 months.
Weak Macro Environment Slows Analog Chip Sales in Q1
The semiconductor industry consists of analog, micro, logic, and memory chips.
Semiconductor Companies Hit by China’s Slowing Car Market
German (EWG) chip maker Infineon Technologies has lowered its annual revenue growth guidance for fiscal 2019 twice in two months, citing declining car sales in China (FXI).
Why Western Digital Stock Declined 28.4% in 2018
WDC’s price target was reduced to $75.00 from $100.00, and the stock is trading at $55.76.
What Texas Instruments’ Efficiency Ratios Suggest
Texas Instruments (TXN) has been transitioning to a 300mm (millimeter) wafer and investing in the fast-growing industrial and automotive markets, boosting its earnings and cash flow.
Semiconductor Stocks Fall on Second Round of US Tariffs
In September, memory chip maker Micron Technology (MU) reported weaker guidance for the November quarter for several reasons, one of which was tariffs.
What Affected NXP Semiconductor Stock on September 25?
NXP Semiconductor (NXPI) stock fell 5% on September 25 and closed trading at $86.51 per share.
Cree Stock Fell 5% on September 17
Cree (CREE), the maker of lighting-class LED (light-emitting diode) and semiconductor products, fell 5.2% on September 17.
What’s Evercore’s Semiconductor Outlook?
Evercore ISI downgraded Western Digital (WDC) and Analog Devices (ADI) from “outperform” to “in line.”
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.
A Look at Texas Instruments’ Strategy to Improve Profitability
Texas Instruments (TXN) has improved its revenue by diversifying into various end markets.
Why NVIDIA and Qualcomm Are on the Top 5 Highest-Valued Semiconductor Stock List
If we look at its PE ratio of 48.85x, NVIDIA (NVDA) is considered an expensive stock at its current price of $197.
Why Semiconductor Stocks with High PE Ratios Are So Important to Investors
As of December 22, 2017, Broadcom (AVGO) had the highest PE ratio of 65x, followed by NVIDIA (NVDA) at 48.85x.
Why Teradyne Is on the List of the Most Overbought Semi Stocks
Stock with high trading volumes are typically the ones preferred by institutional investors. These high-trading stocks are also the most volatile.
What’s So Attractive about Micron and Lam Research to Investors?
The semiconductor industry is currently undergoing a major transition toward AI (artificial intelligence), which is opening up new opportunities.
Breaking Down Broadcom’s Financial Performance
In fiscal 3Q17, the latest reported quarter, Broadcom reported revenues of $4.5 billion on a GAAP basis, up 18% year-over-year.
How Trump’s Immigration Policy Could Affect Intel’s Industrial IoT Business
Germany (EWG) and Japan (EWJ) had previously adopted restrictive immigration policies, which encouraged companies to invest in robotic automation.
What It Takes to Make the Top 5 Highest-Valued Semiconductor Stock List
As of September 12, 2017, Broadcom (AVGO) had the highest PE ratio of 203.54x, followed by Nvidia (NVDA) at 48.4x.
Can Analog Stocks Outperform the Semiconductor Market?
After memory, the second-fastest semiconductor segment is analog IC (integrated circuit), according to IC Insights.
What is Driving Texas Instruments’s Revenue in Fiscal 2017?
Fiscal 2Q17 revenue Texas Instruments (TXN) has exposure in diverse markets which helps it reduce the seasonal impact on its earnings. When demand from personal electronics is weak the demand in industrial is high. Hence, the company’s revenue growth and decline have been in low to mid-single digits. However, this trend broke in fiscal 1Q17 […]
Xilinx’s Performance in the Industrial, Aerospace, and Defense Market
Xilinx expects its Industrial, Aerospace, and Defense revenues to remain sequentially flat at ~$262 million in fiscal 1Q18.
How Analysts View ON Semiconductor
ON Semiconductor (ON) has an average price target of $17.50, which is higher than its 52-week high of $15.86.
Is ON’s Leveraged Balance Sheet a Cause for Concern?
Once ON Semiconductor (ON) achieves the net debt-to-EBITDA ratio of 2x, it plans to resume its share buyback program.
Is There Any Hope for ON in the Consumer and Computing Markets?
In 4Q16, ON’s revenues from its Computing segment rose 27.2% sequentially to $147 million, accounting for 11.7% of the company’s revenues.
How Fairchild Integration Could Help ON Grow in the Communications Market
ON Semiconductor (ON) earns 22% of its revenues from the communications market.
Looking at ON Semiconductor’s Strategy to Improve Its Gross Margin
ON’s non-GAAP gross margin fell from 35.9% in 3Q16 to 35.2% in 4Q16.
What Pushed ON Semiconductor Stock to a 15-Year High?
ON Semiconductor (ON) stock rose to a 15-year high of $15.81 on February 13, the day after it released better-than-expected 4Q16 earnings. ON’s strong earnings were driven by its rapid integration of Fairchild Semiconductor.
Why ADI’s Stock Has Drawn Optimism from Analysts and Investors
Seasonal weakness is expected to hurt ADI’s fiscal 1Q17 revenues, though profit margins are likely to be less affected.
ADI’s Balance Sheet after the Linear Technology Acquisition
ADI is spending ~90% of its R&D expenses on its B2B segments of Industrial, Communications, and Automotive.
Where Are ADI’s Automotive Technology Developments Heading?
ADI unveiled its A2B (automotive audio bus) platform, which delivers high-end, in-cabin audio fidelity while improving fuel efficiency.
Why ADI’s Automotive Is a Future Growth Driver
Fiscal 2Q and 4Q are seasonally strong quarters for ADI’s Automotive segment. In fiscal 4Q16, the segment’s revenue rose 5%.
Will Apple Boost ADI’s Consumer Business?
The Consumer segment is ADI’s most volatile segment as its revenue depends on smartphone sales.
ADI in the Industrial Space: A Question of Momentum
ADI’s Linear Technology acquisition should boost the size of its Industrial, Communications, and Automotive segments.
ADI’s Acquisition Strategy: Focal Points
ADI’s biggest deal has been the acquisition of Linear Technology (LLTC).
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.
Are Marvell’s Strong Margins Converting into Increased Cash Flows?
Marvell reported positive operating cash flow in the past eight quarters except in fiscal 1Q17, when it paid $750 million in a Carnegie Mellon lawsuit.
Why Broadcom’s Industrial Segment Is a Growth Deterrent
Broadcom’s Industrial segment serves the industrial, consumer, medical, automotive, military, and aerospace markets.
Which Semiconductor Stocks Could Benefit Most from Trump’s Policies?
A day after the results of the US Presidential election were announced, some semiconductor stocks fell, but some rose.
Could Trump’s Attack on Immigration Be a Concern for Tech?
If Trump imposes tariffs on Chinese imports once he’s President, it would have a big impact on the semiconductor industry because its key market is China.
ADI’s Stock Outperformed Peers in Fiscal 4Q16
Wall Street analysts have given a “buy” rating to ADI, whereas it has given a “hold” rating for TXN and MXIM.
Will ADI Maintain a Strong Profit Margin in Fiscal 4Q16?
ADI expects its gross margin to fall from 66% in fiscal 3Q16 to 65.5% in fiscal 4Q16.
Will Apple’s iPhone 7 Success Boost ADI’s Fiscal 4Q16 Earnings?
Analog and mixed-signal supplier Analog Devices (ADI) had a strong fiscal 3Q16 driven by orders from Apple (AAPL).
Qualcomm Got a Good Bargain at $110 per NXP Share
Qualcomm (QCOM) has agreed to acquire NXP Semiconductors (NXPI) in an all-cash deal worth $110 per share. QCOM shares rose 4.1%, and NXP shares rose 1.7%.
How Would Qualcomm Fund a Possible Acquisition of NXP?
If Qualcomm (QCOM) looks to buy NXP Semiconductors (NXPI), the deal could be valued at just above $30 billion or as high as $46 billion.
Will 2016’s Semiconductor Consolidation Wave Gobble Up Cypress?
Analysts have mixed views about the possibility of Cypress Semiconductor’s acquisition.
What Are Analysts Saying about AVGO’s Stock?
At $177, AVGO is highly priced compared to its peers, which are priced in the range of $40–$70.
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.
How Much Will ADI’s Acquisition of Linear Technology Impact Its Earnings?
ADI expects to complete the LLTC acquisition by fiscal 2H17. The acquisition would be immediately accretive to ADI’s non-GAAP EPS and FCF.
How Will Linear Technology’s Acquisition Impact Analog Devices’ Shareholders?
Analog Devices plans boost its earnings by acquiring Linear Technology in a cash-and-stock deal of $14.8 billion, of which ~$11 billion will be in cash.
Growth Picks in ADI’s Communications Infrastructure Segment
In fiscal 3Q16, ADI’s Communications Infrastructure revenue grew by 22.4% YoY to $174.1 million, accounting for 20% of the company’s overall revenue.
How Related Are ADI’s Consumer Revenues and Apple’s iPhone Sales?
ADI’s Consumer segment is made up of its computing and mobile businesses, and Apple (AAPL) is its biggest customer.
How ADI Beat Its Own Earnings Guidance in Fiscal 3Q16
Analog Devices (ADI) recently announced the acquisition of Linear Technology for $14.8 billion and then revised its fiscal 3Q16 earnings guidance upward.
Why Did ADI’s Stock Underperform Peers?
In the past 52 weeks, ADI’s stock rose just 10%, whereas TXN’s stock rose by 43%, MXIM’s rose by 24.8%, and LLTC’s rose by 46.2% in the same period.
Why Cowen’s Analysts Favor Texas Instruments-Maxim Merger
Texas Instruments’ last major acquisition was of National Semiconductor in 2011. Cowen analysts have urged TXN to reignite acquisition talks with Maxim.
Which Segment Is Most Profitable for Texas Instruments?
Texas Instruments’ Analog segment contributes 62% to the company’s total revenue and is made up of high volume analog and other products.
Texas Instruments’ 2Q16 Results Renew Investor Optimism
On July 26, 2016, one day after its earnings announcement, Texas Instruments’ stock rose by 9.8% to a 16-year high of $72.58.
How ADI Determined Linear Technology Was Worth Buying
ADI has raised its revenue estimates from $840 million to ~$865 million. It has also raised its non-GAAP earnings per share estimate from $0.74 to $0.78.
How Linear Technology Will Impact ADI’s Margins
In fiscal 2015, Linear Technology had a gross margin of 76% while ADI had a gross margin of 66%.
Linear Technology Wasn’t Looking to Sell to ADI—What Changed Its Mind?
Analog Devices has agreed to pay Linear Technology’s (LLTC) shareholders $46 in cash and 0.2321 ADI shares for every share of LLTC held at the close of the transaction.
Why Linear Technology’s Stock Soared 29% in Just 30 Minutes
On July 26, 2016, Analog Devices (ADI) announced that it is acquiring Linear Technology (LLTC) in a cash-stock deal worth $14.8 billion. This equates to $60 per share of Linear Technology.
What Does Apple’s Buyer Cycle Indicate?
One of the key drivers of Apple’s (AAPL) iPhone’s quarterly sales is the amount time it takes for iPhone users to upgrade their phones.
The Semiconductor Industry’s 2016 Outlook Spells Bad News for ADI
Overall, the semiconductor industry’s growth was slow in 2015, affecting giants such as Intel (INTC) and Qualcomm (QCOM). ADI was no exception.
What’s the Link between ADI’s and Apple’s Profit Margins?
Over the past two years (fiscal 2014 and 2015), Analog Devices (ADI) kept its non-GAAP (generally accepted accounting principles) gross margin above 65%.
What Is Analog Devices’ Acquisition Strategy?
Analog Devices (ADI) has been using M&A (mergers and acquisitions) to rapidly expand its technology offerings and boost its revenue.
What Segment Contributes Most to Analog Devices’ Revenue?
Analog Devices’ consumer segment is highly correlated to Apple. However, this segment is highly volatile, making its share toward revenue also volatile.
Weak Apple iPhone Sales Hit Analog Devices’ Fiscal 3Q16 Guidance
Apple has been in focus for its iPhone production. Its decisions have been affecting its semiconductor suppliers such as Skyworks Solutions and Analog Devices.
The Fidelity Blue Chip Growth Fund: Headed for a Difficult Year?
The Fidelity Blue Chip Growth Fund (FBGRX) had a sizable asset base, amounting to $19.2 billion as of January 2016.
Maxim Stock Rallied on Acquisition Rumors, Rated a ‘Buy’
So far in this series, we’ve seen that Maxim Integrated (MXIM) posted a 10% year-over-year fall in fiscal 2Q16 revenue. But the company is optimistic about its results for fiscal 3Q16.
How Fidelity Blue Chip Growth Fund Allocated Its 2015 Portfolio
Of the ten major sector classifications, the Fidelity Blue Chip Growth Fund is invested in all but the utilities sector, which it exited in August 2015.
Lower Revenue Guidance for Analog, Qorvo, and Cirrus Logic
Analog announced that it expects its revenue in fiscal 1Q16 to be $745–$765 million due to weaker demand in its portable consumer business segment.
Fidelity Blue Chip Growth Fund’s Performance through November 2015
The Fidelity Blue Chip Growth Fund’s assets were invested in 391 holdings comprising stocks and cash as of October 2015.
Investment-Grade Bond Funds See Back-to-Back Outflows
Investment-grade bond funds have seen YTD (year-to-date) net inflows of $13.4 billion, as of December 4, 2015.
McDonald’s Issues $6.0 Billion in High-Grade Bonds
Last week, McDonald’s (MCD) issued Baa1/BBB+ rated high-grade bonds worth $6.0 billion.
Investment-Grade Corporate Bond Issuance Surges
Investment-grade corporate bonds worth $33.5 billion were issued in the primary market in the week ending December 4, 2015.
Comparing Analog Devices, Altera Corporation, and Avago Technologies after 3Q14
In this ten-part series, we’ll examine the performances of Analog Devices, Altera Corporation, and Avago Technologies, peers in the semiconductor industry.
Analysts’ Recommendations for Xilinx Stock
Xilinx (XLNX) has generated returns of 13.3% for the TTM (trailing twelve months) and 9.1% in the trailing-one-month period.
Analog Devices Announces 3Q15 Results, Beats Estimates
On August 18, 2015, Analog Devices (ADI) declared its 3Q15 results and reported revenues of $863 million, an 18.54% increase year-over-year (or YoY) compared to revenues of $728 million in 3Q14.
All Sectors Slid on September 14 except the Utility Sector
Except for the utility sector, all the component sectors of SPY dipped in the volatile environment ahead of the September 16–17 meeting of the Fed.
Microchip Technology Completes Acquisition of Micrel
On August 3, 2015, Microchip announced its acquisition of Micrel Inc., where 98.95% of Micrel shareholders approved the merger and voted in its favor.
Microchip Revenues Remain Flat Year-over-Year
On August 3, Microchip announced its 1Q16 earnings, reporting revenues of $534 million. This is a 0.94% increase year-over-year, compared to revenues of $528.9 million in 1Q15.
Micron Technology Moves away from Personal Computer Segment
Since 2012, Micron Technology has increased manufacturing capacity by 90% and has acquired competitors in an effort to develop strategic partnerships.
Vasco Data Security International’s Forward PE Compared with XLK
Some firms in HACK, like Vasco Data Security International, can be compared from a valuation point of view with large cap stocks in XLK.
Bridgewater Associates reduces position in Microsoft
Bridgewater Associates reduced its position in Microsoft. According to 13F filings for 3Q14, it accounts for 0.01% of the total portfolio.
Bridgewater Associates reduces position in Intel
Bridgewater Associates reduced its position in Intel. According to 13F filings for 3Q14, it accounts for 0.19% of the total portfolio.
Bridgewater Associates adds position in CA, Inc.
Bridgewater Associates increased its position in CA, Inc. According to 13F filings for 3Q14, it accounts for 0.15% of the total portfolio.
Bridgewater Associates increases position in Analog Devices
Bridgewater Associates increased its position in Analog Devices. According to 13F filings for 3Q14, it accounts for 0.16% of the total portfolio.
Bridgewater Associates sells position in Carnival
Bridgewater Associates sold its position in Carnival. According to 13F filings for 3Q14, it accounts for 0.09% of the total portfolio.
Analyzing Bridgewater Associates’ positions in 3Q14
Bridgewater Associates is an American hedge fund. It was founded in 1975 by Ray Dalio. The firm manages ~$157 billion in global investments.
Why the Analog segment is important for TXN’s success
In 2013, the Analog segment contributed ~60% towards Texas Instruments’ (TXN) overall revenues. TXN’s Analog segment earned revenue of $7.2 billion in 2013.