Maxim Integrated Products Inc

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.

Tech stocks Maxim Integrated (MXIM), Advanced Micro Devices (AMD), and FireEye (FEYE) are the major movers in after-hours trading today. But why?

Maxim Integrated (MXIM) announced its fiscal 2019 fourth-quarter results (for the year that ended in June) on July 30.

So far, semiconductor earnings have raised investors’ expectations about growth in the second half and next year.

Analog chipmakers have exposure to almost all end markets including industrial, automotive, communications, and consumer markets.

Today, Analog Devices (ADI) reported its second-quarter earnings.

Texas Instruments (TXN) manufactures analog chips that are built on old technology nodes that have already been paid off.

The semiconductor industry consists of analog, micro, logic, and memory chips.

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.

Worldwide semiconductor sales growth remained strong in H1 2018 thanks to the growing adoption of AI (artificial intelligence) and IoT (Internet of Things).

NXP Semiconductors (NXPI), a leader in the automotive chip market, provides HPMS (high-performance mixed-signal) analog, MCU (microcontroller), and sensor solutions.

NXP Semiconductors (NXPI) supplies HPMS (high-performance mixed-signal) automotive, secure ID, connected device, infrastructure, and interface solutions.

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.

Texas Instruments (TXN) has improved its revenue by diversifying into various end markets.

Analysts at Morgan Stanley and KeyBanc Capital Markets have listed Cypress Semiconductor (CY) as a potential acquisition target.

Dividends come at the cost of a stock’s growth potential because a company can use that cash to reinvest in its businesses in order to boost growth.

The Cavium (CAVM) acquisition could lead to several synergies and boost long-term growth for Marvell Technology (MRVL). This acquisition is very important for Marvell.

As of September 12, 2017, Qualcomm (QCOM) had the largest annualized dividend yield of 4.5%, followed by Cypress Semiconductor (CY) at 3.2%.

After memory, the second-fastest semiconductor segment is analog IC (integrated circuit), according to IC Insights.

Scrutiny of Cypress’s cost structure reveals interesting details about the Cypress 3.0 strategy execution—and its influence on budget allocation.

NXP Semiconductors is headed for a merger with Qualcomm in a $38 billion cash deal that could create the world’s largest supplier of automotive chips.

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 […]

Broadcom’s mergers and acquisitions Broadcom (AVGO) is looking to tap opportunities from the connected world through its massive portfolio, which spans the wired, wireless, enterprise storage, and industrial sectors. The company built the portfolio through M&A (mergers and acquisitions), which significantly increased its debt. Cash-debt position After completing the $37-billion Broadcom-Avago deal, CEO Hock Tan stated […]

ON Semiconductor (ON) has an average price target of $17.50, which is higher than its 52-week high of $15.86.

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.

ON Semiconductor (ON) earns 22% of its revenues from the communications market.

Apart from ADAS cameras, the increasing adoption of LED lighting in mid-range cars presents another growth opportunity for ON Semiconductor (ON), which supplies front and rear LED lighting driver solutions.

ON’s non-GAAP gross margin fell from 35.9% in 3Q16 to 35.2% in 4Q16.

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.

Seasonal weakness is expected to hurt ADI’s fiscal 1Q17 revenues, though profit margins are likely to be less affected.

Fiscal 2Q and 4Q are seasonally strong quarters for ADI’s Automotive segment. In fiscal 4Q16, the segment’s revenue rose 5%.

Marvell Technology Chief Executive Officer Matthew Murphy stated that Marvell’s strengths are in “storing, moving, and accessing data at high speeds.”

Communications semiconductor supplier Marvell Technology (MRVL)—a name that has been in the spotlight for an accounting scandal—is showing signs of revival.

Apart from seasonality, Broadcom is slowly realizing that its merger synergies and future growth opportunities seem bright. Analysts see a strong upside potential for its stock.

Broadcom’s Industrial segment serves the industrial, consumer, medical, automotive, military, and aerospace markets.

Broadcom’s next acquisition after the Avago-Broadcom merger came faster than expected. The $37 billion merger left the combined company with very high net debt.

ADI expects its gross margin to fall from 66% in fiscal 3Q16 to 65.5% in fiscal 4Q16.

Analog and mixed-signal supplier Analog Devices (ADI) had a strong fiscal 3Q16 driven by orders from Apple (AAPL).

Marvell Technology (MRVL) has been in the news for all the wrong reasons in fiscal 2016. MRVL experienced accounting, legal, and management issues that brought its fiscal 2Q16 earnings under scrutiny and resulted in the removal of its co-founders.

Samsung’s recall and production issues were visible in the stock market. Shares of Qorvo (QRVO) fell 5.4% in just two days after the announcement, while shares of Intel (INTC), Broadcom, IDT, and Qualcomm fell at least 2%.

At $177, AVGO is highly priced compared to its peers, which are priced in the range of $40–$70.

Fiscal 3Q16 will be the first quarter in which investors come to know the growth potential of Avago-Broadcom as a combined entity.

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.

Analog Devices (ADI) recently announced the acquisition of Linear Technology for $14.8 billion and then revised its fiscal 3Q16 earnings guidance upward.

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.

Texas Instruments’ last major acquisition was of National Semiconductor in 2011. Cowen analysts have urged TXN to reignite acquisition talks with Maxim.

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.

In fiscal 2015, Linear Technology had a gross margin of 76% while ADI had a gross margin of 66%.

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.

When Marvell’s management came into question, its two founders Sehat Sutardja and Weili Dai were forced to resign with immediate effect on April 5, 2016.

Analog Devices (ADI) has been using M&A (mergers and acquisitions) to rapidly expand its technology offerings and boost its revenue.

From a purely NAV (net asset value) return standpoint, the American Century Growth Fund – Investor Class has had a better one-year period until March 18, 2016, than ten of its peers in the group.

In fiscal 2016, Semtech’s revenue fell ~12%, driven by falling demand for long-haul optical communications and reduced demand from Korean smartphone makers.

In fiscal 2015, NXP Semiconductors revenues rose by 8% YoY to $6.1 billion. Its non-GAAP EPS rose by 17.6% YoY to $5.60 during the year.

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.

As seasonal effects fade away, Maxim Integrated (MXIM) expects to report stronger results in fiscal 3Q16 than it did in fiscal 2Q16.

Maxim Integrated Products (MXIM) reported its fiscal 2Q16 earnings and beat analysts’ revenue estimates.

Altera’s revenue fell 20% YoY (year-over-year) to $399.6 million, and EPS (earnings per share) fell from $0.38 in fiscal 3Q14 to $0.20 in fiscal 3Q15.