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Real InsightsTop Semiconductor Stocks for the Fourth Quarter of 2020
Tech & Comm ServicesWhy AMAT Stock Rose 5% despite Weak Q2 Results
Applied Materials (NASDAQ:AMAT) stock gained around 5% in after-hours trading on Thursday following its second-quarter results.
Company & Industry OverviewsAMAT Stock Rises: Fourth-Quarter Earnings Takeaways
Applied Materials (AMAT) stock rose 4% after market hours yesterday after the company posted strong fiscal 2019 fourth-quarter results.
Company & Industry OverviewsWestern Digital CEO Retires, Stock Slumps 16%
Today, Western Digital stock (WDC) slumped as much as 16.25% after CEO Steve Milligan announced his sudden retirement. Is the worst over for WDC?
Earnings ReportSemiconductor Players INTC, LRCX, and TER Rally
Last week, five major semiconductor companies reported their third-quarter earnings results. Three of these five reported upbeat earnings.
ConsumereBay, LRCX, and PYPL Stock Movements after Earnings
Tech stocks eBay (EBAY), PayPal (PYPL), and Lam Research (LRCX) are moving in after-hours trading after today’s earnings reports.
Earnings ReportSemiconductor Earnings Watch: TER and LRCX
This week, semiconductor equipment suppliers Teradyne Inc. (TER) and Lam Research (LRCX) will report their quarterly earnings.
Company & Industry OverviewsEarnings: XLNX and TXN Stocks in Focus This Week
Major chip companies Texas Instruments (TXN) and Xilinx (XLNX) released their earnings last week and saw their stocks fall.
Earnings ReportChip Stocks Rise on TSMC Earnings Beat for Q3
Today, the world’s largest foundry, Taiwan Manufacturing Semiconductor Company or TSMC, released its third-quarter earnings, rallying chip stocks.
Tech & Comm ServicesTwo Semiconductor Stocks Are Crushing It: Time to Sell?
Semiconductor firms Lam Research and KLA Corp. have crushed the markets in 2019. While Lam Research is up 65.4%, KLA has returned 71% year-to-date.
Company & Industry OverviewsMicron Maintains Strong Financial Position in Fiscal 2019
Micron Technology (MU) reported positive FCF (free cash flow), a strong balance sheet, and double-digit ROI (return on investment) in fiscal 2019.
Earnings ReportMicron Slumps 11% after Q4 Earnings, Analysts Upbeat
Micron (MU) stock dipped 11% after its Q4 of fiscal 2019 earnings. This slump occurred after the stock rallied about 20% in September on analysts’ optimism.
Tech & Comm ServicesMicron: Q4 Earnings Send Semiconductor Stocks Lower
Micron shares fell more than 9% in early market trading today. The stock is trading at $44.09, which is 14% below its 52-week high.
Earnings ReportMicron Stock Fell on Disappointing Guidance
Micron Technology reported upbeat fourth-quarter fiscal 2019 results on September 26 after the market closed. Micron stock fell 1.76% to $48.60 on the day.
Earnings ReportFive Things to Look for in Micron’s Upcoming Results
Micron Technology (MU) stock is in the spotlight this week, as the company is set to release its fiscal 2019 fourth-quarter results on Thursday after markets close.
Earnings ReportAMAT Stock Fell More than 4% after Q3 Results
Applied Materials (AMAT) shares have fallen more than 4% on Friday. The company announced its third-quarter results after the market closed on Thursday.
Earnings ReportWhat to Expect from This Week’s Semiconductor Earnings
So far, semiconductor earnings have raised investors’ expectations about growth in the second half and next year.
Tech & Comm ServicesGoldman Sachs Turns Bullish on Semiconductor Stocks
The US markets are up today as Wall Street braces for a busy earnings week. The S&P 500 ETF is up 0.3%, and semiconductor stocks lead the market’s gains.
Company & Industry OverviewsChip Equipment Suppliers’ Stocks Rise despite Micron’s Capex Cut
On June 25, Micron Technology (MU) reported better-than-expected earnings results for the third quarter of fiscal 2019, which sent the stock up 13.3% a day after its earnings release.
Earnings ReportXilinx and Lam Research: First-Quarter Earnings Highlights
On April 24, Xilinx (XLNX) and Lam Research (LRCX) announced their fiscal earnings for the quarter.
Earnings ReportXLNX and LRCX Move in Opposite Directions after Earnings
On April 24, several semiconductor stocks made new 52-week highs.
Earnings ReportReduced Memory Spending to Hit Earnings of AMAT, KLAC, and LRCX
The semiconductor industry is going through a downturn, but many companies expect growth to resume in the second half of 2019.
Tech & Comm ServicesMemory Stocks Fell on Samsung’s Weak Q1 Earnings Guidance
Most semiconductor stocks with exposure to the memory market are falling on the back of continued weakness.
Earnings ReportWhat Made Memory Stocks the Top Gains of the S&P 500 Index?
Micron Technology (MU) and Western Digital (WDC) stocks were among the top five gainers of the S&P 500 Index on March 21 in the first half of the trading session.
Tech & Comm ServicesWhat’s behind Semiconductor Stocks’ Rise?
Most semiconductors stocks had risen more than 2% as of midday today, with several factors having raised investors’ optimism about the sector’s growth.
Company & Industry OverviewsCan Recently Downgraded Lam Research Afford a Dividend Payout?
Lam Research (LRCX) was recently downgraded to “equal-weight” from “overweight” by Morgan Stanley, according to a note to clients cited by Bloomberg.
Earnings ReportApplied Materials’ Q2 Guidance Signals Semiconductor Weakness
On February 14, in after-hours trading, Applied Materials stock fell 2% as its fiscal 2019 second-quarter guidance missed estimates.
Company & Industry OverviewsCan Applied Materials Maintain High Efficiency Ratios in 2019?
In fiscal 2018, AMAT’s revenue rose 19% YoY to $17.25 billion, while its non-GAAP (generally accepted accounting principle) net income rose 29.6% YoY to $4.57 billion.
Earnings ReportSemiconductor Downturn to End AMAT’s Revenue Growth Trend
Analysts expect AMAT’s full-year 2019 revenue to fall 11.5% YoY to $15.27 billion due to weak demand from memory chipmakers and China.
Earnings ReportApplied Materials Stock Rallies on Optimism about H2 2019
In this series, we’ll see what investors should expect from Applied Materials’ upcoming earnings.
Earnings ReportKLAC Stock Rises Over 3% on Fiscal Q2 2019 Revenue Beat
The semiconductor market is seeing demand weakness, especially in China. SME (semiconductor manufacturing equipment) suppliers are also seeing demand weakness.
Earnings ReportIntel and Western Digital Stocks Move in Opposite Directions
Semiconductor stocks’ reaction to earnings After bottoming out in December, the stock market has been showing signs of recovery. Semiconductor stocks have been recovering this month due to anticipation that the second half of 2019 will bring growth. However, this week has been very volatile for semiconductor stocks—most companies reported weak earnings and guidance, with just a […]
Earnings ReportTXN, LRCX, XLNX: Earnings Boost Confidence in Chip Industry
The fourth-quarter semiconductor earnings season began with warnings of a demand slowdown.
Earnings ReportWhy 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.
Company & Industry OverviewsWhy Samsung May Want to Cut Memory Production
Samsung (SSNLF) is contemplating lowering its memory chip production next year as a measure to manage supply and prices.
Company & Industry OverviewsWhy Qualcomm May Expand Its Board
Qualcomm (QCOM) held its annual shareholder meeting in March.
ConsumerValuation is Going to Get the Market…Eventually
Macro events are always overblown I wrote last week that I did not think Trump’s legal woes would affect the market (SPY) much. I also said two weeks ago that Turkey wouldn’t either. Macro worries are almost always overblown. So far, so good. Yes, volume is low, but market participation is broad and stocks are […]
Earnings ReportAMAT’s Weak Fiscal Q4 2018 Guidance Makes Investors Cautious
Applied Materials, the world’s largest chip manufacturing equipment vendor, reported strong fiscal Q3 2018 earnings but lowered its fiscal Q4 2018 guidance.
Tech & Comm ServicesChip Stocks Fall on Fears of a Two-Year Growth Trend Slowdown
NVIDIA and Applied Materials published their latest earnings results on August 16. Their weaker guidances have spooked investors.
Earnings ReportAMAT’s Semiconductor Systems Revenues May Fall after Peaking
In the fiscal second quarter, AMAT’s Semiconductor Systems division’s revenues peaked at $3.0 billion, accounting for 65.6% of the company’s revenues.
Earnings ReportOperating Efficiency Drives Applied Materials’ Profitability
In the March quarter, AMAT had an operating expense ratio of 16.6%, which was the lowest operating expense ratio AMAT has ever achieved.
Company & Industry OverviewsS&P 500’s Top Gainers: Perrigo and Charles Schwab
Perrigo, which is an American international manufacturer of private label over-the-counter pharmaceuticals, was the S&P 500’s top gainer on July 17.
Company & Industry Overviews How Applied Materials Could Be Impacted by Export Controls
Both domestic and foreign semiconductor companies have increased their capital spending on fabrication facilities in China (FXI).
Tech & Comm ServicesThe Rise and Fall of Micron Stock after Its Fiscal Q3 Earnings
Micron Technology (MU) delivered record fiscal Q3 2018 earnings and guidance on June 20, beating analysts’ estimates by a good margin.
Fund ManagersWhy Micron Was Tepper’s Top Buy in Q1 2018
David Tepper’s Appaloosa Management’s top buys in the first quarter were Micron Technology (MU), Lam Research (LRCX), Wells Fargo (WFC), UBS (UBS), and Allergan (AGN).
Earnings ReportWhat’s Applied Materials’ Strategy to Tap the AI Trend?
Applied Materials (AMAT), KLA-Tencor (KLAC), and Lam Research (LRCX) are witnessing strong growth in the memory and logic segments.
Earnings ReportSemiconductor Systems: AMAT’s Key Revenue Driver for Fiscal 2018
In fiscal 1Q18, AMAT’s Semiconductor Systems division’s revenue rose 32.6% YoY (year-over-year) to $2.9 billion.
Earnings ReportChina: One of Applied Materials’ Key Revenue Drivers
Applied Materials (AMAT) supplies SME (semiconductor manufacturing equipment) to chip makers all over the world.
Company & Industry OverviewsDoes AMAT Stock Deliver Better Returns than Its Peers?
AMAT increased its stock buyback authorization by $6.0 billion, doubled its dividend per share, and is working to improve its profits to improve its ROE.
Company & Industry OverviewsWhat Price Ratios Say about Applied Materials’ Stock Valuation
On May 9, AMAT had a forward PE ratio of 12.0x, which is lower than KLAC’s ratio of 13.7x but higher than LRCX’s ratio of ~11.4x.
Company & Industry OverviewsUnderstanding Applied Materials’ Stock Price Movement
Because Applied Materials (AMAT) is positioned at the beginning of the supply chain, its stock is among the first to be impacted by any industry-wide news.
Company & Industry OverviewsHow Analysts View Applied Materials Stock
During its fiscal 1Q18 earnings call, Applied Materials’ CFO, Daniel Durn, stated that the broadening of the semiconductor market would increase WFE spending and reduce its cyclicality.
Company & Industry OverviewsThe Impact of US–China Trade Tensions on Applied Materials Stock
Applied Materials (AMAT) earned 21% of its 2016 revenues and 19% of its 2017 revenues from China. Any major shift in this market could hurt AMAT.
Tech & Comm ServicesIs the Growth Cycle for Applied Materials Here to Stay?
Trade war jitters between the US and China sent Applied Materials stock to $55.40 on March 23 from its 52-week high of $62.40 on March 12.
Company & Industry OverviewsFab Equipment Industry Outlook: What It Says about Lam Research
Lam Research (LRCX) expects its shipments to fall $100 million sequentially to $3 billion in the June quarter.
Company & Industry OverviewsWhat Lam Research’s Fiscal 3Q18 Earnings Say about Memory Market
Lam Research (LRCX) was among the first semiconductor companies to release its fiscal 3Q18 earnings for the quarter that ended on March 25.
Company & Industry OverviewsInvestor Reaction to Lam Research’s and TSMC’s 2Q18 Guidance
The semiconductor earnings season started on a negative note with companies at the start of the supply chain reporting weaker guidance.
Company & Industry Overviews1Q18 Earnings Season: Good News for Semiconductor Investors?
The earnings season started with better-than-expected earnings for semiconductor equipment manufacturer Lam Research (LRCX).
Macroeconomic AnalysisWatch out Market, Semiconductors are Trying to Warn Us
Taiwan Semi is warning you Taiwan Semiconductor (TSM) missed and warned today. They lowered 2Q revenue guidance to $7.8-$7.9 billion. The street was at $8.82 billion. They blamed it on smart phone slowing. Mizuho securities also warned today that Apple’s (AAPL) forward guide would have to come down as well. Yesterday, Lam Research’s (LRCX) stock […]
IndustrialsStocks that are Influencing the Market Midweek
Premium Content As we make it to the middle of the first week of earnings, some interesting trends are developing, some a bit alarming, some decent. The overall market still looks solid with the S&P500 (SPY) now up over 6% since the lows on April 2. The Dow Jones Industrial Average (DIA) held the 200 […]
Tech & Comm ServicesWhat’s Contributing to Promising Outlook for Lam Research?
Lam Research’s (LRCX) revenue rose 12% and 36% in 2016 and 2017, respectively. It rose 52% in 1Q18.
Tech & Comm ServicesWhy Foundries Welcome the Artificial Intelligence Revolution
The complexity of AI chips could lead to manufacturing innovation since these chips require larger dimensions and specialized processors.
Tech & Comm ServicesWhy Qualcomm Could Exit the List of Top 5 Cash-Rich Semi Companies
In calendar 3Q17, Qualcomm (QCOM) was the richest semiconductor company in terms of cash, with net cash of $17.9 billion.
Tech & Comm ServicesThis Made Micron One of the Fastest-Growing Semi Stocks of 2017
Generally, growth stocks are the ones that deliver above-average capital appreciation, but such stocks may or may not give dividends.
Tech & Comm ServicesWhat’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.
Tech & Comm ServicesWhy Lam Research’s Dividend Yield Has Changed over the Years
Lam Research’s revenue and earnings in 2015 and 2016 Lam Research’s (LRCX) revenue rose 14% and 12% in 2015 and 2016, respectively. Revenue from Taiwan, China, and Southeast Asia drove growth in both years. Revenue from Korea, the United States, and Europe rose in 2015 before falling in 2016, and Japan’s revenue fell in 2015 before rising […]
Tech & Comm ServicesThe Top 5 Cash-Rich Semiconductor Stocks Today
In calendar 2Q17, TSMC (TSM) was the richest semiconductor company in terms of cash, with net cash of $18.5 billion.
Tech & Comm ServicesTwo Newcomers in the Top 5 Fastest-Growing Semiconductor Stocks
As of September 12, 2017, Nvidia (NVDA) was the fastest-growing stock, rising 185% over the past year, compared to the industry’s 32% growth.
Tech & Comm ServicesInside the Top 5 Most Volatile Semiconductor Stocks
Intel (INTC) is the world’s largest semiconductor company and also the least volatile semiconductor stock, though it has a beta of 1.23.
Tech & Comm ServicesUnderstanding the Role of AMAT, LRCX, and KLAC in Semiconductor Growth
According to SEMI’s estimates, the global semiconductor market is expected to grow at a CAGR (compound annual growth rate) of 6.7% between 2015 and 2025.
Company & Industry OverviewsWhat AMAT’s Price Ratios Say about Its Valuation
On August 7, 2017, AMAT had a PS ratio of ~3.7x.
Tech & Comm ServicesWhat Investors and Analysts Think about AMAT Stock
Applied Materials (AMAT) is witnessing strong growth momentum, with revenues growing in double digits and earnings per share growing in triple digits.
Earnings ReportIs AMAT Losing Market Share to Lam Research and KLA-Tencor?
The emergence of the IoT (Internet of Things), self-driving cars, AR/VR (augmented/virtual reality), and AI (artificial intelligence) is driving demand for logic and memory chips.
Company & Industry OverviewsWhat AMAT’s Sequential Revenue Growth Indicates
Applied Materials (AMAT) witnessed strong 45% year-over-year growth in 1Q17 while the overall SME market witnessed growth of 110% YoY.
Earnings ReportCould AMAT Achieve New Revenue Milestones in Fiscal 2017?
Applied Materials’ revenues rose 45% year-over-year to $3.5 billion in fiscal 2Q17, as its foundry and display equipment sales rose in triple digits.
Company & Industry OverviewsWhat Pushed Applied Materials’ Stock Price to a 17-Year High
Applied Materials (AMAT) stock has risen 86% over the past 12 months to the 17-year high of $44. In this series, we’ll look at the factors driving Applied Materials’ fiscal 2017 earnings.
MiscellaneousWhy Analysts and Investors Are Optimistic about AMAT Stock
In 2016, AMAT stock rose 92.2%, outperforming the stocks of LRCX and KLAC, which rose 50% and 20.6%, respectively.
Company & Industry OverviewsWhat AMAT’s Balance Sheet Says about Its Financial Position
AMAT’s FCF (free cash flow) increased significantly in fiscal 2Q16 when the company started reporting revenue growth after several quarters of decline.
Company & Industry OverviewsHow the Transition to 3D NAND Could Affect AMAT’s Memory Business
Another segment driving the Semiconductor Systems’ growth is the memory business.
Company & Industry OverviewsHow ASML’s EUV Technology Could Threaten AMAT’s Foundry Business
ASML is seeing strong demand for its EUV technology and the strong demand was reflected in its latest fiscal 4Q16 earnings.
Company & Industry OverviewsWill 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.
Company & Industry OverviewsThese Factors Could Improve AMAT’s Profitability in 2017
For fiscal 1Q17, AMAT expects its non-GAAP (generally accepted accounting principles) gross margin to rise 43.8% from 43.7% in fiscal 4Q16.
Company & Industry OverviewsGlobalstar Rose as the FCC Reviews Its Revised Proposal
The S&P 500 Telecom Services sector rose 1.1% on December 19. Globalstar (GSAT) and Iridium (IRDM) were the top performers in the telecom sector.
Earnings ReportWill Strong EPS Push AMAT’s Cash Flows in Fiscal 4Q16?
The company aims to increase its EPS (earnings per share) from an estimated $1.75 in fiscal 2016 to $2.8 in fiscal 2019, growing at a CAGR (compounded annual growth rate) of 17%.
Earnings ReportBehind Applied Materials’ Fiscal 2Q16 Revenue
In fiscal 2Q16, Applied Materials’ (AMAT) revenue was almost flat at $2.45 billion, beating the analyst estimates of $2.43 billion.
Company & Industry OverviewsHow Much Are Production Cycles Impacting Applied Materials’ Earnings?
Applied Materials’ earnings will likely increase in 2016 as the overall semiconductor industry transitions to new technology.
Tech & Comm ServicesOracle Announces NetSuite Acquisition: Cloud Gets Bigger
On July 28, 2016, Oracle (ORCL) and NetSuite (N) announced a merger. Oracle will purchase NetSuite for $109 per share, or $8.6 billion net of cash and debt.
Tech & Comm ServicesOracle-NetSuite Agreement: The Basics
NetSuite agreed to a non-solicitation agreement with a fiduciary out. This means that during the pendency of the merger, NetSuite may not contact other potential buyers.
Tech & Comm ServicesCan the Oracle-NetSuite Deal Get Antitrust Approval?
With most mergers, the rate of return is driven by the time it takes to finalize the transaction. For Oracle (ORCL) and NetSuite (N), the timeline will be driven by the antitrust waiting period.
Tech & Comm ServicesCould the Oracle-NetSuite Deal Get Competitive?
Oracle (ORCL) co-founder Larry Ellison and his family control 45% of NetSuite (N) stock. So it’s theoretically possible but not likely that a company could make a hostile bid.
Tech & Comm ServicesParsing Oracle-NetSuite Material Adverse Effect Clause: Part 1
In the merger deal between Oracle (ORCL) and NetSuite (N), the MAE clause lays out the circumstances under which Oracle can back out of the transaction.
Tech & Comm ServicesThe Oracle-NetSuite Merger: What’s the Rationale?
The relationship between Oracle and NetSuite goes back a long way. Oracle co-founder Larry Ellison and his family own almost half of NetSuite stock.
HealthcareWill the ARM Holdings-Softbank Merger Attract Arbitrageurs?
Arbitrageurs will certainly be interested in setting up the ARM Holdings (ARMH) spread, especially if they can get an 8% return using the ordinary shares.
HealthcareRisk-Reward Ratio of the ARM Holdings-Softbank Merger
ARM Holdings (ARMH) was trading at about $47 per share before the deal with Softbank was announced. The risk-reward ratio is about 12:1.
HealthcareCould the ARM Holdings-Softbank Deal Get Competitive?
Softbank is paying a pretty penny for ARM Holdings (ARMH). The premium to the prevailing share price was in the low 40%.
HealthcareRegulatory Conditions to the Softbank-ARM Holdings Deal
Softbank decided to waive any antitrust or regulatory conditions to the transaction. It doesn’t care if the regulators have issues—it’s buying the company.
HealthcareWhat Are the Conditions for the ARM Holdings-Softbank Merger?
ARM Holdings and Softbank are merging in a cash transaction. In an unusual step, there aren’t regulatory or antitrust conditions to the transaction.
HealthcareWhat’s the Rationale for the Softbank-ARM Holdings Merger?
The Softbank-ARMS Holdings merger intends to increase Softbank’s growth so that it can position itself as a leader in Internet of Things.
HealthcareMaking a Big Splash: Softbank Acquires the UK’s ARM Holdings
On July 18, Japan’s Softbank and the United Kingdom’s ARM Holdings (ARMH) announced a merger where Softbank will buy ARM for 1,700 pence in cash.
MiscellaneousWill Arbs Assemble the Microsoft-LinkedIn Arbitrage Spread?
The chance of regulators blocking the transaction is pretty low given that LinkedIn (LNKD) and Microsoft (MSFT) don’t compete directly.