Why memory product selling prices could impact Micron’s stock
The semiconductor industry requires huge investments, making it a capital-intensive industry. On average, equipment needs to be replaced each three to five-year time period.
Why oversupply could affect Micron’s NAND flash products
NAND Flash sales were up 35% for the first six months of 2014, as volumes increased amid a 17% fall in average selling prices or ASPs.
SanDisk’s 3Q15 Net Margin Highest among Storage Giants at 9.16%
The gross margin for SanDisk (SNDK) has been declining year-over-year from 49.35% in 3Q13 to 46.79% in 3Q14 and 41.51% in 3Q15.
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.
What Comes after Dell–EMC, WDC–SNDK Deals in the Storage Space?
SanDisk (SNDK), which was eagerly looking for a buyer, found one in Western Digital (WDC). WDC agreed to buy SanDisk for $19 billion.
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.
Must-know: A guide to Blue Ridge Capital’s 4Q13 positions
Blue Ridge Capital is a New York–based hedge fund founded in 1996 by Tiger Cub John Griffin. The fund generally targets “absolute returns” by investing in and short-selling companies.
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.
A Closer Look at NetApp’s High Cash-to-Debt Ratio
NetApp’s cash-to-debt ratio in 1Q16 was 3.33x—higher than the 1.36x industry median. Its operating income was -$26 million.
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.
How Will Micron Use Its Cash Reserves?
As of September 3, 2015, Micron had $5.6 billion of cash and marketable investments.
Lam Research to Acquire KLA-Tencor
KLA-Tencor constitutes ~2.4% of the iShares PHLX Semiconductor ETF (SOXX) and 0.84% of the VanEck Vectors Semiconductor ETF (SMH).
WDC Traded below 20-Day Moving Average in November 2015
As of November 20, Western Digital Corporation (WDC) generated investor returns of -39.32% in the trailing 12-month period and -11% in the trailing one-month period.
How Did Micron Technology Perform Compared to Its Peers?
The peers outperformed Micron based on the current ratio, PE ratio, and PBV ratio. The ETFs outperformed Micron based on the price movement, PE ratio, and PBV ratio.
Apple Trades above 20-Day Moving Averages in October
On October 2, 2015, Apple closed the trading day at $110.38. Based on this figure, it traded below its 100, 50, and 20-day moving averages
Western Digital Deal Makes Semiconductor Space a Hotbed for M&A
By acquiring SanDisk (SNDK), Western Digital (WDC) aims to improve its market standing as a supplier that could reignite new pricing pressure in the storage market.
Must-know overview of Micron Technology: A DRAMatic growth story
Micron’s stock has surged on bullish earnings prospects, and it’s up more than 200% since the beginning of 2013, partly propelled by the acquisition of Elpida last year.
JAT Capital Eliminates Exposure to SanDisk Corporation
JAT Capital sold its position in SanDisk Corporation (SNDK) in 4Q14. The position had represented 1.2% of the fund’s third-quarter portfolio.
Behind Micron’s Product Enablement Plan for 3D XPoint
Micron and Intel have developed 3D XPoint in a way that benefits from both DRAM (dynamic random access memory) and NAND (negative AND).
Can the Western Digital-SanDisk Merger Get Antitrust Approval?
While the Western Digital-SanDisk merger brings together the third and eighth players, respectively, in storage (which usually isn’t problematic from an antitrust standpoint), regulators can get very granular when they define submarkets.
What Makes Micron a Key Player in Semiconductor Manufacturing?
Semiconductor manufacturing is complex and involves design, fabrication, assembly, and testing. Building a fab requires investments of $3–4 billion.
Intel Generated YTD Stock Returns of -20.03%
Intel generated TTM returns of -16.66%, 9.26% in the trailing one month. It generated -20.03% YTD. Its share price fell by 1.53% in the trailing five days.
Why Micron’s NOR Flash products are losing ground to NAND
These improvements require larger capacities for both code and data storage and significantly faster erase and write times. NAND offers both of these at relatively low cost.
Micron’s Transition to 3D NAND Could Impact Its Near-Term Margins
At present 3D NAND is less efficient than 16-nm, but it is expected to surpass 16-nm in the future. Thus, Micron will see expansion in its gross margins from the NAND business.
Why SanDisk Stock Is Hovering Near the Top of Its 52-Week Range
After the announcement of its fiscal 1Q16 earnings, SanDisk stock rose by 0.8% to $76.50 on April 28, 2016. However, the very next day, the stock fell.
Western Digital’s Offer for SanDisk Includes 15% Premium
To acquire SanDisk, Western Digital has offered SanDisk shareholders $86.50 per share. This is approximately 15% premium to SanDisk’s closing share price on October 20, 2015.
Could the SanDisk-Western Digital Merger Get Competitive?
In the SanDisk-Western Digital merger, Western Digital is paying about 2.6x trailing-12-month revenues and 10.6x trailing-12-month EBITDA.
Blue Ridge starts a new position in hedge fund favorite Apple
John Griffin’s Blue Ridge bought a stake in Apple Inc. (AAPL) last quarter. The stock accounts for a 1.85% position in the fund’s portfolio.
Micron Technology’s Lower Position in Point72 Asset Management
Point72 reduced its position in Micron Technology. It sold 4,792,200 shares during 4Q14. The shares accounted for 0.28% of the fund’s total 4Q14 portfolio.
IBM Continues Its Falling Revenue Trend in 3Q15
IBM’s 2Q15 results marked 13 straight quarters of falling revenue. This trend continued in fiscal 3Q15 when IBM failed to report any revenue growth.
Must-know: An in-depth review of SanDisk’s 2Q14 earnings
SanDisk (SNDK) was founded in 1988. It’s a pioneer in flash memory technology. It designs, develops, and manufactures NAND flash memory storage solutions.
Why China-Based Companies Might Pursue SanDisk
Owing to China’s keen interest and demand in the semiconductor space, a China-based conglomerate would be an interesting choice to acquire SanDisk.
Apple Is a Fundamentally Strong Stock
Cash-to-debt ratio measures a company’s financial strength. Apple’s cash-to-debt ratio in 3Q15 is 0.6x, which is lower than the industry median of 1.4x.
How Will the Memory Market’s Transition to 3D Impact Earnings?
Samsung (SSNLF) started mass production of 3D V-NAND flash memory chips in May 2014, giving it the advantage of being a first mover.
Western Digital’s Telling YoY Revenues in 4Q15
Western Digital reported 4Q15 revenues of $3.2 billion—a 10.11% decrease compared to 3Q15 and 12.59% lower than its 4Q14 revenues.
NetApp Dropped from Oaktree Capital’s Portfolio
NetApp offers data management and storage systems, software, and services. NetApp increased its stock repurchase program by an additional $2.5 billion.
Must-read: Is SanDisk stock worth including in your portfolio?
SanDisk (SNDK) is considered a pioneer in flash memory. As the cloud is increasingly adopted for data storage, consumers and enterprises are likely to opt for SSDs rather than HDDs in new systems.
Looking Back on Micron Technology’s Plunge in 2015
As of the end of December 2015, Micron Technology has generated YTD returns of -59%, compared to 61% in 2014.
Why competition in the 3D NAND flash space is heating up
Micron revealed plans to transition from planar NAND flash to 3D NAND flash, with volume production targeted for fiscal 2015 with planar NAND scaling slowing down and reaching its limits.
Western Digital’s Fiscal 2015 Revenues, Cash Flow, and Operating Expenses
Western Digital generated $488 million in cash from operations in 4Q15, ending with total cash and cash equivalents of $5 billion.
Why Have Seagate and Western Digital Had Such a Tough 2016?
Seagate’s shares fell by 13% in the week ending January 22, after Mizuho cut its price target for STX from $38 to $32 and provided a “neutral” rating.
Challenges for the Western Digital-SanDisk Merger
One of Western Digital’s top shareholders, Alken Asset Management, opposed the merger in its open letter to Western Digital’s board.
Look What Just Sent Seagate’s Stock Spiraling Downward
In fiscal 3Q16, Seagate reported revenues of $2.6 billion and a gross margin of 20.2%. Its net loss was $21 million, with diluted EPS of -$0.07.
Earnings Season: Will Seagate’s Loss Be Western Digital’s Win?
Western Digital (WDC) and Seagate have cutthroat competition in the HDD (hard disk drive) space, with the former accounting for a 43.6% share and the latter for a 40.1% share.
Behind 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.
Economic Uncertainties May Limit Global NAND Flash Revenues
Samsung has started mass production of 3D-NAND flash memory and has gradually increased its market share in this segment.
Why SanDisk’s embedded segment is key for growth
Although high-end smartphones and tablets will bring significant revenues for SanDisk, the company expects the SSD division to benefit more than its embedded segment will.
Apple Trades Below Moving Averages
Out of 23 analysts covering Apple stock, 40 have a “buy” recommendation, two have a “sell” recommendation, and 13 have a “hold” recommendation.
Investors: What to Consider if You Invest in SanDisk
If it’s true that Apple is changing its preference to Samsung, SanDisk will lose a very important customer, which will negatively impact SanDisk’s top line.
NetApp Shines in an Underperforming Industry
The Technology, Hardware, and Storage subsector generated returns of -0.97% in the last week, compared with 0.69% for XLK. As a whole, the subgroup is trending down due to lower demand for computers.
More Motives behind EMC’s Sale to Dell: the Third Platform
EMC houses storage, server, cloud, and big data under its business model. But IDC predicts that third platform technology will grow by ~20% by 2020.
Why Is Alken Against the Western Digital–SanDisk Merger?
In light of the changes in the business and capital markets, Alken is urging Western Digital to back out of the merger by paying a $184.4 million termination fee.
How Micron’s Storage Business Will Drive 3D NAND Growth
The data storage market is growing rapidly with the emergence of the cloud. Like Intel, Micron has been increasing its exposure in the storage space.
Does SanDisk’s margin have scope for expansion?
Increased contribution of the embedded solutions segment towards SanDisk’s overall revenues is a positive sign.
SanDisk launches its largest SD memory card ever
In September 2014, SanDisk (SNDK) released the Extreme Pro SDXC memory card, which is the world’s first Secure Digital card with storage of 512 gigabytes of data.
Why the cloud is a boon for SanDisk’s NAND flash growth
Cloud storage has opened up a plethora of opportunities for SanDisk, as cloud storage is completely dependent on flash drives to be super fast.
What are SanDisk’s key channels?
For the nine months ended FY14, SanDisk’s commercial channel contributed 67% to the company’s overall revenues.
Micron’s Transition to 3D NAND Temporarily Reduces Storage Revenue
In fiscal 3Q16, Micron’s SBU (Storage Business Unit) revenue fell by 20% on both a year-over-year and quarter-over-quarter basis to $719 million.
Marvell Attracts Interest from China
Marvell’s rich patent portfolio makes it an ideal acquisition target for China, which is looking to acquire multinational semiconductor companies.
What’s the Root Cause of Marvell’s Problems?
Let’s dig into the cause of Marvell’s accounting issues, see how one thing led to another, and look at how its new management plans to untangle the chaos.
What the Investments of Micron and Other Suppliers in 3D NAND Capacity Could Mean
Micron is moving a step further and developing 3D NAND Generation 2 technology. It expects to bring this into production in fiscal 2Q17.
Broadcom Maintains Profit Margin after Merger
Broadcom’s non-GAAP interest expense rose threefold from $41 million in fiscal 1Q16 to $150 million in fiscal 2Q16.
How Do Analysts View Hewlett-Packard?
Hewlett-Packard (HPQ) generated investor returns of -14.1% in the trailing-12-month period and 4.8% in the trailing-one-month period.
How Does Western Digital View Fiscal 4Q16?
Revenues and operating expenses In fiscal 4Q16, Western Digital (WDC) expects revenues in the range of $2.6 billion–$2.7 billion. The firm expects its gross margin percentage to improve compared to fiscal 3Q16. It also expects operating expenses of $475 million in 4Q16. Excluding the impact due to the interest expense from debt financing related to […]
Applied Materials and the Shift from DRAM to NAND
Applied Materials expects memory spending to remain flat on a YoY basis. But it expects spending to shift from DRAM to the nonvolatile flash memory NAND.
Western Digital to Complete SanDisk Acquisition by June 2016
The SanDisk (SNDK) and Western Digital (WDC) merger is expected to create a company with nearly $20 billion in combined revenue.
Western Digital Shares Slump as Net Profit Declines Substantially
On April 29, 2016, Western Digital (WDC) announced its fiscal 3Q16 results. It reported revenues of $2.8 billion and net income of $74 million, with earnings per share of $0.32.
Why SanDisk’s Consumer Segments Drove Revenue Growth
SanDisk started its business with removable products. The segment is one of its growth drivers and commands the largest share of its overall revenue.
How Did SanDisk’s Product Mix Drive Revenue Growth?
SanDisk’s product mix consists of five segments: removable, embedded, enterprise, client SSD (solid state drive), and other. The company earns most of its revenue from removable.
Why SanDisk Returned to Growth after a Year of Revenue Declines
In fiscal 1Q16, SanDisk’s (SNDK) revenue rose 3% YoY, topping analysts’ estimate and its own guidance. This was the first growth after four consecutive quarters of decline.
SanDisk’s Fiscal 1Q16 Results: What a Surprise!
This earnings season is full of surprises for the semiconductor industry. SanDisk (SNDK) has now posted surprising results for fiscal 1Q16, which ended April 3, 2016.
How Will Dell Fund the EMC Acquisition?
Dell is planning to sell ~$9 billion of unsecured junk bonds backing the EMC Corp. (EMC) acquisition. Dell is largely expected to pay an interest rate of ~10% unless there is a major improvement in the bond market.
Understanding the Financial Health of Intel’s Memory, Security, New Technology Groups
While Intel (INTC) has been focused on its computing and data center revenues, its IoT (Internet of things) revenue grew significantly in 1Q16.
What Portfolio Moves Did SHRAX Make prior to 1Q16?
SHRAX’s assets were invested across 76 holdings as of March 2016, one less than a quarter ago. It was managing assets worth $12.6 billion as of March’s end.
Why Have Seagate and Western Digital Had Rough Years So Far?
Western Digital and Seagate account for 80% of the global HDD market. In the last few years, the HDD market has shrunk, while the SSD market has expanded.
Weak Demand and Inventory Drove Seagate’s Lower Guidance
Recently, Seagate Technology (STX) announced its preliminary earnings results and lowered its revenue and margin estimates for fiscal 3Q16.
What Factors Affected Micron’s Profits in Fiscal 2Q16?
On a non-GAAP (generally accepted accounting principles) basis, Micron Technology’s gross margin fell from 34% in fiscal 2Q15 to 20% in fiscal 2Q16.
Why Did Micron Post Negative Earnings in Fiscal 2Q16?
Micron Technology’s fiscal 2Q16 revenue and fiscal 3Q16 guidance fell short of analysts’ estimates. The company expects growth to pick up in fiscal 2H16.
Why Micron Is Fast-Tracking Its 3D NAND Technology Development
Micron is differentiating its 3D NAND flash technology from that of peers. But the ScanDisk-Toshiba joint venture says its 3D NAND offers more capacity.
Inside Micron’s Business Focus for 2016
For 2016, Micron has set aside ~$5 billion in capital expenditure, of which ~$800 million is to be spent on one facility in Singapore and one in Idaho.
Micron Weighs in on Supply Growth in the Memory Industry
Micron expects DRAM supply to grow in the range of 20%–25% in 2016 and then to slow to less than 20% in 2017 because technology is reaching scaling limits.
Micron Wonders: How Price Sensitive Can NAND Demand Get?
Micron Technology expects NAND demand to grow at a CAGR of 40% between 2016 and 2019, driven by reduced costs and the higher performance of 3D NAND.
Options for Investors in the Vanguard Capital Opportunity Fund
From a purely NAV (net asset value) return standpoint, the Vanguard Capital Opportunity Fund has had a forgettable one-year period until March 18, 2016, as it stood tenth among its peer group.
Micron Technology Sees Long-Term Growth in the Memory Space
While Micron Technology (MU) expects growth in memory content could drive future growth despite the slowdown in the consumer market, it continues to invest in breakthrough innovation.
Micron Aggressively Expands Its 3D NAND Capacity
Micron is aggressively expanding its 3D NAND capacity. It aims to spend up to $2.5 billion of capital on ramping up production of 3D NAND Gen 1 and starting manufacturing of the Gen 2 chip.
Why SanDisk Stands to Win by Merging with Western Digital
The merger was as a breather for SanDisk shareholders. They have been facing lower share prices after the price fell by 24% between March 20 and March 26, 2015.
How Will SanDisk Reduce the Cost for Western Digital?
The overlap of products and customers between SanDisk and Western Digital would help reduce $180 million in operating expenses over the next 18 months.
How Will Western Digital Benefit from the SanDisk Merger?
The merger will create a company with nearly $20 billion in combined revenue. It would be able to capitalize on the enterprise storage products market.
What Caused the Western Digital-Unisplendour Deal to Fall?
Unisplendour backed out of the deal to acquire a 15% stake in Western Digital for ~$3.8 billion. Investors wondered if the merger deal would come through.
Shareholders Approved the Western Digital-SanDisk Merger
Shareholders’ verdict is out. Both Western Digital (WDC) and SanDisk (SNDK) shareholders approved the $17 billion merger.
Why NAND Flash Chip Revenues Fell in 4Q15
Weaker shipments of smartphones, tablets, and notebooks also resulted in a 10%–11% drop in prices of eMMC and SSD (solid state drive) products in 4Q15. Revenues of the global NAND flash industry fell 2.3% quarter-over-quarter in 4Q15.
Why Tsinghua Terminated the Western Digital Investment Deal
Last week, Tsinghua Unigroup’s subsidiary Unisplendour announced that its board of directors decided to terminate its investment plan in leading data storage company Western Digital (WDC).
Alken Says $19 Billion Price for SanDisk Is Too High
Alken stated that in light of changing market dynamics and the capital market scenario, the $19 billion price for SanDisk, which has been posting declining earnings in fiscal 2015, is too high.
Last Place: The ClearBridge Aggressive Growth Fund
The ClearBridge Aggressive Growth Fund – Class A (SHRAX) had $12.1 billion worth of assets under management at the end of January 2016.
Slow Commercial Demand Hits SanDisk’s Fiscal 4Q15 Revenue
SanDisk and Texas Instruments joined the fray and reported their fiscal 4Q15 earnings on January 27. Explore this series for performance and growth prospects.
Samsung, Toshiba, and SanDisk Lead Global NAND Flash Market
Samsung (SSNLF) accounts for 30% of the NAND flash market as of 3Q15. Other players in this space include Toshiba (TOSYY) and SanDisk (SNDK).
SAP Beat Analysts’ Estimates in Fiscal 4Q15
SAP will announce its fiscal 4Q15 results on January 22, 2016. On January 11, 2016, SAP reported preliminary revenue of 6.4 billion euros.
EMC Trades below Moving Averages in January 2016
EMC (EMC) generated investor returns of -15.1% in the trailing-12-month period and -5.9% in the trailing-one-month period.
Analyzing the 2015 Allocation of ClearBridge Aggressive Growth Fund
ClearBridge Aggressive Growth Fund’s top ten equity holdings in December included UnitedHealth Group (UNH), Comcast (CMCSA), SanDisk (SNDK), Broadcom (BRCM), and Anadarko (APC).
IBM Continued Its No-Revenue Growth Trend in 4Q15
Though it failed to report revenue growth, IBM’s revenue and EPS of $22.1 billion and $4.84 beat analysts’ expectations by $20 million and $0.03 per share.