By MKM Partners ($42.32, March 30, 2015)
We are downgrading field-programmable gate array vendor Xilinx to Neutral from Buy but our estimates and $45 fair-value estimate remain unchanged.
Xilinx (ticker: XLNX ) shares rallied in sympathy the last hour of Friday trading following reports of Intel ( INTC ) (rated at Buy, $40 price target) being in talks to acquire competitor Altera ( ALTR ). We see little strategic fit for a second field-programmable gate array (FPGA) acquisition and, if true, an Intel for Altera deal creates a stronger competitor. Furthermore, we see the FPGA model of specialized processing becoming less favored by hardware-commoditization trends. Our fair-value estimate of $45 is 20 times the September 2015-June 2016 GAAP earnings-per-share estimate of $2.23.
We see little strategic fit for a second FPGA acquisition. Intel is alone in building a leading-edge foundry business with interest in securing volumes and manufacturing intellectual property (IP). Broadcom ( BRCM ) has similar networking exposure and is the only larger fabless supplier, but its investment model is to deliberately trail by at least one process node.
A potential Intel-Altera combination would create a powerful FPGA competitor with captive foundry access and greater reach in data centers and networking. We see the potential for great cross-sell opportunities in the data center with Intel server chips and Altera hardware accelerators to assist functions like machine learning. This would also be a negative for Nvidia ( NVDA ) (rated at Neutral, $24 fair-value estimate) graphic processing units (GPUs) used as accelerators. Its inability to replicate the “analog utility” model limits Xilinx’s leverage and is less attractive to suitors.
Although Xilinx continues to deliver leading products and win designs at top original equipment manufacturers (OEMs), the conversion to high-volume production has been disappointing. One underlying issue
Intel logoIntel (NASDAQ:INTC) has been given an “AA” credit rating by Morningstar. The research firm’s “AA” rating suggests that the company is a very-low default risk. They also gave their stock a three star rating.
A number of other firms have also recently commented on INTC. Analysts at B. Riley reiterated a “buy” rating and set a $41.00 price target on shares of Intel in a research note on Friday, March 20th. Analysts at Credit Suisse Group AG set a $40.00 price target on shares of Intel and gave the company a “buy” rating in a research note on Friday, March 13th. Analysts at Ascendiant Capital Markets upgraded shares of Intel to a “sell” rating and set a $24.00 price target on the stock in a research note on Friday, March 13th. Finally, analysts at Pacific Crest lowered their price target on shares of Intel from $42.00 to $35.00 and set an “outperform” rating on the stock in a research note on Friday, March 13th. Six analysts have rated the stock with a sell rating, seventeen have given a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $35.72.
"And those claiming that Intel has announced something need to put up or shut up." Nobody needs do anything for you.
lol What is your problem? Complaining about whether or not there is an announcement is kind if childish. You won't change the interest. INTEL or Altera is under no obligation to announce they are considering a merger. If you are short maybe you should consider covering or add to the short if it rises without an official announcement.
Why Merrill Lynch Is Positive On Intel Corporation (INTC) Acquisition Of Altera Corporation
Analysts at Merrill Lynch has reaffirmed a Buy rating for Intel with the target price of $38 after it announced its intention of acquiring Altera
By: Martin Blanc
Published: Mar 30, 2015 at 3:54 pm EST
Analysts at Merrill Lynch have reaffirmed a Buy rating for Intel Corporation (NASDAQ:INTC) with a price target of $38 after the world's largest chip maker announced its intention to acquire the smaller semiconductor firm Altera Corporation (NASDAQ:ALTR).
The Merrill Lynch analysts suggest, the acquisition will be a step forward for Intel as it looks to diversify its operation manufacturing PC chips and into much broader market sectors including autos, defense and telecoms. Buying Altera will help Intel to enhance its servers as the company can get full access to Altera’s FPGA chips.
Analysts have pointed out other semiconductor companies that can profit from acquisition deals; including Broadcom Communication (NASDAQ:BRCM), Xilinx, Inc. (NASDAQ:XLNX) and NXPI Semiconductors NV (NASDAQ:NXPI) which acquired Freescale Semiconductor Ltd (NYSE:FSL) to became the number one company in auto industry.
Analysts say buying up Altera will lead to a paltry 1%-2% increase in Intel’s annual revenues. The flipside is that they predict an increase of over 5 % or 15 cents in Intel’s EPS for FY16 which paints a positive picture for investors. It’s believed that Intel will have to raise between $6 billion to $13 billion to acquire its semiconductor target; not a problem for Intel given its size. However, this can affect the company’s ability to buy back its shares for some time.
The acquisition will not result in any competitive advantage for Intel as Altera can add only $2 billion in sales whereas Intel has already made a sale worth $1.5 billion in the telecom wireless sector.
M&A Speculation Fuels Bullish Betting on Intel Corporation (INTC)
Intel Corporation (INTC) calls are trading at an accelerated clip today
by Karee Venema 3/30/2015 1:45 PM
Intel Corporation (NASDAQ:INTC) shot higher on Friday afternoon, amid reports the chipmaker has its sights set on Altera Corporation (NASDAQ:ALTR) -- the latter of which got handed a plate full of bearish backlash this morning. Today, INTC has pared a portion of these gains -- down 0.9% at $31.72 -- but options traders think another end-of-week surge is on the horizon.
However, there is now an Acer Chromebook aimed at the professional consumer and business market. It’s a full-sized laptop with a 15.6-inch display, the newest Broadwell CPU from Intel Corporation (NASDAQ:INTC), Gigabit Wi-Fi, all-day battery life and a starting price under $250.
yes already spewing about how the rise in price makes no sense.
"Even if the talks go through, it still needs the regulators to approve." BFD Nothing to stop it.
Intel in Talks to Buy Altera -- 4th Update
7:26 pm ET March 27, 2015 (Dow Jones) Print
By Dana Mattioli and Dana Cimilluca in New York and Don Clark in San Francisco
Intel Corp. is in advanced talks to buy chip partner Altera Corp., according to people familiar with the matter, a move that would represent the semiconductor giant's biggest-ever acquisition.
It wasn't immediately clear how much Intel would pay for a deal. Altera had a market capitalization of about $10.4 billion before The Wall Street Journal first reported on the talks and ended Friday valued at $13.4 billion. It would be a big bite for Intel, which has historically stuck to smaller-size acquisitions.
The Santa Clara, Calif., company is a giant in the semiconductor business and had a market value of $151.6 billion. It is the largest maker by far of chips that supply calculating engines in PCs and server systems.
Altera, based in San Jose, Calif., is one of the two largest makers of field-programmable gate arrays, or FPGAs, which can be configured by customers for various tasks after they are manufactured. FPGAs are widely used in phone networks, computer-networking equipment, cars and other products.
Altera and longtime rival Xilinx Inc. have pushed FPGAs into new areas where customers once designed chips from scratch. These chips can be programmed to carry out specialized tasks like data encryption and work much faster than standard microprocessors like Intel's Xeon.
Intel and Altera have worked together in the past. Intel, which has tried to build a new business out of manufacturing chips for other companies, in 2013 reached an agreement to offer its most advanced production process to Altera.
Buying Altera would further solidify their manufacturing partnership, and help Intel keep its factories full. Still, a tie-up with Altera may not help Intel place more of its chips in smartphones, now a major gap in its portfolio as more computing activities take place in pocket-size product
didn't you get a premium for the sale of the options? I assume you sold Calls. You wanted somebody to buy them and lose the premium they paid. It is a zero sum game.
Intel In Talks To Buy Altera: Report
By Reuters on March 27 2015 4:39 PM EDT
Dancing spider-like robots are displayed at the Intel booth during the 2015 International Consumer Electronics Show in Las Vegas, Jan. 6, 2015. REUTERS/STEVE MARCUS
(Reuters) - Intel Corp (INTC.O) is in talks to buy fellow chipmaker Altera Corp (ALTR.O) in a deal that would likely top $10 billion, marking the latest merger in the semiconductor business, the Wall Street Journal reported on Friday.
An acquisition of Altera, which makes programmable chips widely used in cellphone towers, the military and other industrial applications, underscores Intel Chief Executive Officer Brian Krzanich's determination to expand into new markets as the personal computer industry looses steam.
Terms of the potential deal and its timing were not known, the Journal said.
Intel declined comment on what would be its largest takeover ever if a deal were to be reached. Altera did not immediately respond to a request for comment.
Intel, the world's largest chipmaker, and Altera have already been forming a close relationship.
In 2013, Intel agreed to manufacture chips on behalf of Altera, a major change for the world's top chipmaker, which traditionally has been unwilling to share its cutting-edge technology. Since then the two companies have also expanded their cooperation to include other kinds of chip development.
Shares of Altera, valued at $10.4 billion at Thursday's close, were up 24.5 percent at $43.16 per share on the Nasdaq on Friday. Intel shares were up 6.4 percent to $32 onNasdaq.
M2 Communications 03/27/2015 8:46 AM ET
Micron and Intel Unveil New 3D NAND Flash Memory; Technology Advancements Enable Three Times More
Micron and Intel Unveil New 3D NAND Flash Memory
03/26/2015 12:30 PM ET
- 3D NAND technology uses floating gate cells and enables the highest-density flash device ever developed--three times higher capacity1 than other NAND die in production.
- Enables gum stick-sized SSDs with more than 3.5 terabytes (TB) of storage and standard 2.5-inch SSDs with greater than 10TB.
- Innovative process architecture techniques extend Moore's Law for flash storage, bringing significant improvements in density while lowering the cost of NAND flash.
- Micron and Intel unveil new 3D NAND technology with three times higher capacity than other NAND die in production
BOISE, Idaho and SANTA CLARA, Calif. - Micron Technology, Inc. (Nasdaq: MU), and Intel Corporation today revealed the availability of their 3D NAND technology, the world's highest-density flash memory. Flash is the storage technology used inside the lightest laptops, fastest data centers, and nearly every cellphone, tablet and mobile device.
This new 3D NAND technology, which was jointly developed by Intel and Micron, stacks layers of data storage cells vertically with extraordinary precision to create storage devices with three times higher capacity1 than competing NAND technologies. This enables more storage in a smaller space, bringing significant cost savings, low power usage and high performance to a range of mobile consumer devices as well as the most demanding enterprise deployments.
Planar NAND flash memory is nearing its practical scaling li
You should really get your mind off other posters. This isn't a theater for tit for tat. Be happy.
According To Intel Corporation (INTC) And Micron Technology, Inc. (MU) 3D NAND Flash To Triple Capacity Of SSD’s
Form 4 Delphi Automotive PLC For: Mar 26 Filed by: Brazier Allan J
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