20.09 +0.29 (1.46%)
Pre-Market: 4:08AM EST
|Bid||0.00 x 3200|
|Ask||0.00 x 1000|
|Day's Range||19.55 - 20.48|
|52 Week Range||9.04 - 34.14|
|Beta (3Y Monthly)||4.44|
|PE Ratio (TTM)||64.08|
|Earnings Date||Jan 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||23.70|
The fourth quarter was a bad one for semiconductor stocks. While the market as a whole struggled as well, semiconductor stocks took an extra painful drumming led by Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). Intel (NASDAQ:INTC) stock, however, was largely spared from the selling. The trade war with China has not improved sentiment on Wall Street and in particular, with semi stocks. Because Intel stock has weathered the storm so well though, investors are optimistic about its fourth-quarter earnings results coming up on Jan. 24 after the close. ### Intel Stock Earnings Analysts expect the company to earn $1.22 per share this quarter and $4.53 for the year. Those numbers are up notably over the last 90 days, from $1.09 and $4.16 per share, respectively. Presently, these estimates call for 13% year-over-year (YoY) growth for Q4 and over 30% growth for the year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On the revenue front, analysts expect sales of $19.01 billion for the quarter and $71.2 billion for the full year. If achieved, it will represent YoY growth of 11.5% and 13.4%, respectively. Should investors worry about Intel reporting a quarter like Nvidia or AMD, surprising the Street with a big revenue miss and poor guidance? I wouldn't expect it. I still like those companies for the long-term, but let's not forget that they were big crypto plays and once that revenue stream was shut off, they were left with a glut of inventory. Intel's not in the same boat and as a result, I wouldn't expect the same hangover. * 7 Stupidly Cheap Stocks to Buy Now It's also expected that Intel will raise its dividend. Last year, management bumped its quarterly payout by roughly 10% to 30 cents per share. Intel stock currently yields 2.5%. ### Evaluating Intel In Q2 there were some concerns about Intel, but those worries were wiped away when it reported third-quarter results. Earnings of $1.40 per share came in 25 cents per share ahead of expectations, while revenue of $19.16 billion came in more than $1 billion above estimates. Guidance also came in ahead of expectations. Would management give guidance that would be too hard to hit? Ordinarily not. So one would think that another beat could be in store, which would be necessary to spring Intel stock higher from here. Either way though, optimism from last quarter is surely making investors feel good about the coming quarter. That said, I would feel better about Intel if we had more certainty with its CEO. When the company finds a permanent replacement for former CEO Brian Krzanich, then investors will likely feel more comfortable owning the stock. ### Trading INTC Stock Click to Enlarge Shares of INTC stock have been trading relatively well and have certainly held up better than peers like Nvidia and AMD. In fact, unlike most stocks, Intel didn't put in a low near Christmas Eve. Instead it put in a higher low, a bullish development. As Intel stock slowly but surely grinds higher, it keeps bumping into the 200-day as resistance, right near this $49 to $50 level. What can we expect for earnings? A positive reaction likely thrusts Intel stock over this level. A close over $50 is bullish and will bring in buyers looking to push INTC higher. A negative reaction could thrust INTC stock below the 21-day and 50-day moving averages. If Intel pulls back but holds these moving averages, I would consider it a possible long setup. If these levels fail, wait for a test of uptrend support (purple line) near $44 to $45. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Consumer Stocks to Buy for Income * 7 Dark Horse Stocks You Really Need to Look at for 2019 * 7 Retail Stocks to Buy for the Rise of Menswear Compare Brokers The post Will Intel Stock Suffer Like Nvidia on Earnings? appeared first on InvestorPlace.
The tech earnings news flow gets underway this week with chipmakers Texas Instruments Incorporated (NASDAQ: TXN ) and Intel Corporation (NASDAQ: INTC ) scheduled to report. Activity is expected to pick ...
It seems, for now, like the collapse in Nvidia (NASDAQ:NVDA) stock has ended. Nvidia stock has bounced about 20% from late December lows. Of course, NVDA stock still sits more than 40% below October highs. Indeed, NVDA was one of the biggest victims of the market-wide sell-off that began in early October, and it's been one of the bigger beneficiaries of the "buy the dip" response to late December lows. But the decline in Nvidia stock wasn't caused just by broad market fears which means the bounce is going to take more than investors looking for bargains. And at least in the near term, I'm skeptical there's a catalyst for further upside here. NVDA fell sharply after Q3 earnings in November, largely due to weak guidance for the fourth quarter. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stupidly Cheap Stocks to Buy Now With those Q4 earnings on the way next month, Nvidia is likely to show little, if any growth. Pricing pressure caused by a cryptocurrency mining glut isn't going away any time soon. And news from chip rivals suggests pricing across the semiconductor space is getting worse, not better. Longer-term, the case for NVDA stock still looks intriguing, given multiple potential drivers. But the 17% rise in NVDA in the first three weeks of 2019 might be as much as investors can expect. ### The Pricing Problem The key question facing NVDA at the highs was whether it was an exception to the semiconductor rule. As chip stocks soared in recent years, investors seemed to forget that the semiconductor business historically has been a tough one. This wasn't just true of Nvidia, but also of rival Advanced Micro Devices (NASDAQ:AMD) and memory play Micron Technology (NASDAQ:MU). Pricing generally falls; performance has to steadily improve. Demand and supply imbalances often lead to cyclical booms and busts. A chip shortage leads prices to soar, production increases to meet the demand, and even as suppliers insist that this time they won't overproduce, a glut eventually emerges and prices and earnings plunge. Chip bulls last year began to argue that the cyclical days were over, as secular demand drivers like IoT (Internet of Things) and cloud computing would lead to years of rising sales. Semiconductor stocks like NVDA now could be - and were - valued like other tech plays. That thesis has been blown up, with Nvidia's Q4 a key reason why. And recent news suggests that pricing and supply will be a problem for some time. Taiwan Semiconductor Manufacturing (NYSE:TSM) slashed guidance coming out of its Q4 report last week. Even NVDA bulls have lowered 2019 projections. And Nvidia CFO Colette Kress seemed to give relatively muted commentary toward pricing, China, and datacenter at a recent conference. It looks like it's going to get worse (or at best stay bad) before it gets better for Nvidia. And so it seems unlikely that Q4 results next month will do much for Nvidia stock. ### The Long-Term Case for Nvidia Stock Long-term, admittedly, there's still a case for NVDA. The major growth drivers here, datacenter, automotive, even gaming, still exist. The valuation assigned NVDA looks much more reasonable, at about 20x earnings backing out the company's net cash. Analysts remain behind the stock, with an average price target of $228 suggesting over 50% upside. I'm simply not sure I see a catalyst ahead. Q4 numbers are likely to be disappointing. There's pricing pressure across the industry. And I do wonder whether NVDA is the best "buy the dip" play in the depressed chip space. Equipment manufacturer Applied Materials (NASDAQ:AMAT) looks attractive, as I wrote last month. Micron stock seems to have bottomed after earnings. More broadly, Nvidia stock clearly is a "show me" story. Even 20x earnings, which sounds cheap in the context of tech, is a relatively high multiple for a chip stock. It's a multiple that still incorporates long-term growth in the context of the still-real semiconductor cycle. It's going to take at least two quarters for Nvidia to show that growth and reignite investor confidence. Some investors may see that as reason enough to buy here, and simply wait for growth to come around. Personally, I think the opportunity in NVDA will still be there for the first half of 2019 at least, and potentially at a lower price. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Consumer Stocks to Buy for Income * 7 Dark Horse Stocks You Really Need to Look at for 2019 * 7 Retail Stocks to Buy for the Rise of Menswear Compare Brokers The post Don't Jump on Nvidia Stock Just Yet, It Might Stay Stuck Awhile appeared first on InvestorPlace.
What Investors Can Expect from Intel's Q4 Earnings(Continued from Prior Part)Intel’s next CEO Intel (INTC), one of the largest semiconductor companies in the world, has been running without a CEO for over six months since its former CEO, Brian
Key Updates from Chipmakers: INTC, QCOM, AVGO(Continued from Prior Part)Qualcomm paid $1.0 billion to win Apple business Qualcomm (QCOM) and Apple executives were called to testify in the trial of an antitrust case brought up by the United States
End of Excess GPU Inventory Puts NVIDIA Back in Business(Continued from Prior Part)What end of excess GPU inventory means to consumers Previously, we saw that NVIDIA (NVDA) CEO Jensen Huang, in an interview with VentureBeat, stated that almost the
What Investors Can Expect from Intel's Q4 Earnings(Continued from Prior Part)Full-year operating leverage So far, we’ve learned that Intel (INTC) expects its revenue to rise 13.4% YoY (year-over-year) and its operating expenses to rise less than
Key Updates from Chipmakers: INTC, QCOM, AVGOOutside candidate and diversity considerations Intel (INTC) has been searching for a new CEO for more than six months. Brian Krzanich was ousted as Intel CEO in June, and Intel CFO Bob Swan has been acting
End of Excess GPU Inventory Puts NVIDIA Back in BusinessNVIDIA and excess GPU inventory NVIDIA’s (NVDA) stock was hit hard on November 15, 2018, when the company reported weaker-than-expected fiscal 2019 fourth-quarter guidance. The guidance
S&P 500 Bleeds on Reports of US-China Trade Talks Going off TrackUS-China trade talks On Tuesday, a Financial Times report sent tremors through the broader market. The report claimed that “The Trump administration has rejected an offer from
NEW YORK, NY / ACCESSWIRE / January 23, 2019 / U.S. markets declined on Tuesday, breaking a streak of four consecutive days in the green, on growing trade concerns. Stocks were pressured lower on reports ...
What TSMC’s Guidance Could Mean for Semiconductor Investors(Continued from Prior Part)TSMC’s profitability Whereas TSMC’s (TSM) revenue grew robustly in last year’s fourth quarter, it has given weak guidance for this year’s first quarter
Let's see what investors should expect from Intel's fourth-quarter financial results, including data centers and Internet of Things, ahead of the firm's Q4 earnings release Thursday.
What TSMC’s Guidance Could Mean for Semiconductor Investors(Continued from Prior Part)TSMC secures process node leadership Previously, we saw that TSMC’s (TSM) demand is slowing due to macroeconomic environment weakness. However, it is
The US Reportedly Cancels This Week’s Trade Talks with ChinaThe market sell-off On Tuesday, the broader market is trading on a negative note due to investors’ growing fear of slowing global economic growth. Yesterday, China’s National Bureau of
Is Apple Killing Its iPhone LCD Displays?Apple’s latest American tech giant Apple (AAPL) started 2019 on a negative note. The company’s CEO, Tim Cook, announced a cut in its guidance for the first quarter (which ended on December 29, 2018) on
What Investors Can Expect from Intel's Q4 Earnings(Continued from Prior Part)Revenue in 2018 Intel (INTC) reported strong revenue growth in the PC and data center spaces in the first three quarters of 2018. It witnessed strong demand in the fourth
2018 ended with a bang between the good and bad sentiment trading on Wall Street. The final battle occurred around Christmas and finally investors were able to shake the malaise that had dominated trading for most of the year. All year long, the stock rally died a slow death by a thousand cuts. The stream of negative headlines was too much to overcome and investors were selling rallies. There were two dominant fears: The tariff war between the U.S. and China, and the fear of the Federal Reserve. But in December, U.S. Fed chairman Jerome Powell finally confirmed that they will not invert the yield curve on purpose. That alleviated half the fears on Wall Street. So the sell the rip mentality died and the buyers are back in control. This is not to say that is all green pastures from here. After all, we still have the tariff deal to work out. On that front, both sides are singing softer tunes. They sound intent on resolving the matter by the March deadline. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Index Funds to Buy and Hold For now and going into the earnings season, stocks can trade mostly on merit. Today I share three blue-chip stocks that are likely to do well in 2019. My mid-term thesis is still bullish on these S&P 500 index stocks. There is too much good news now to let headline fears cripple stocks. In the long run, fundamentals will prevail over fear. ### Amazon (AMZN) Source: Shutterstock For decades Amazon (NASDAQ:AMZN) stock has been the mother of all momentum stocks. This is a company that emerged out of nothing and crippled several industries. This is most evident with what it did to the brick-and-mortar retail industry. These stocks there are still reeling and have not yet figured out how to solve that riddle. The bullish thesis on Amazon stock is very simple: If the stock market is higher, then Amazon is leading the charge. AMZN has created and now dominates the cloud. This is a great cash cow that will feed any new growth to come. And it is constantly seeking new income streams so it will indeed have more home runs to follow. My bet is that voice control technology will play a big role in AMZN's next chapter. Alexa licensing income will probably be a huge contributor to the company's bottom line. Furthermore, they have over a hundred million subscribers each paying $119 per year for prime. This is also a giant contribution to their bottom line much like similar memberships benefit Costco (NASDAQ:COST). What all of this means is that AMZN is a blue-chip stock to own for the long-term. Even Warren Buffet may buy some shares eventually. The tricky part is that momentum stocks like Amazon rarely give a clear points of entry, so choosing the perfect time to buy this king among S&P 500 stocks means that you will never own it. Amazon's earnings are just around the corner and those can temporarily be binary. So I would prefer to own half a position going in and add to it thereafter. ### Facebook (FB) Source: Shutterstock There have been few blue-chip stocks that fell more out of favor than Facebook (NASDAQ:FB) last year. Management had to justify its very existence in congressional hearings, after FB took the blame for a giant data breach in 2018. Facebook's management failed to mend the wound. The mistake management made was hiding the event when it happened and then not severely and publicly punishing those who actually did the wrongs. While the headline from that particular Cambridge Analytica incident is gone, the stigma lingers. So now all eyes are on FB, so it cannot afford to make another major mistake. Operationally Facebook is a marketing behemoth. Its reach stretches far beyond its own FB platform and advertisers are not likely to leave the company. In addition, FB also has several platforms that it has yet to monetize. I personally use WhatsApp and will probably pay for it it or would tolerate the ads if and when they come. Facebook has over a billion users engaged on its platforms every day for hours at a time. This is massive potential that is almost impossible to ruin. So this is merely an adjustment period. That is necessary and the company will come out of it better in the long run. The key perspective with FB stock is that it's a long-term investment and not just a trading vehicle. The stock has violently bounced off recent lows and it has been setting higher ones since the Christmas bottom. So going into the earnings FB stock has momentum on its side and the buyers are in control. I do worry about the expenses that management is incurring in order to appease public opinion. Management wants to make sure legislators see them fit to lead, so they don't come down hard on the industry with extreme litigious cuffs. * 10 Lithium Stocks to Buy Despite the Market's Irrationality This is one of the greatest names among other S&P 500 stocks and no one truely wants to cripple it. As such, we need to adjust our privacy expectations. There is no way to stop data breaches from happening, but companies have to put their best efforts forward on that front. I am realistic with my expectations on privacy, so I am aware that they already know too much about me, even though I never used the platform. But so does Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google and every other company I do business with electronically. Facebook is not evil, it just happens to be the most successful of all social media platforms. Once investors get over these moral difficulties, FB stock should get back on track. ### Nvidia (NVDA) Source: Shutterstock Our lives are completely dependent on technology now more than ever and this is a trend that is not going to reverse anytime soon. We have a few suppliers to power that tech. Semiconductor companies, especially chip providers, are at the heart of this trend. Unfortunately they are momentum stocks and that makes them hard to trade, so it is best to invest into a longer term thesis. On the way down, they seem like they're falling into an abyss and on the way up they seem perpetually ready to correct. And that's what happened to Nvidia (NASDAQ:NVDA) stock. This was a company that everybody had to own when it was $290 a share. But when it fell to $120 last year, no one would touch it. The upside of a big NVDA stock fall is that the price-to-earnings ratio comes back to earth. At $156 per share, NVDA's P/E is now 20 and it is no longer bloated. NVDA has shed most of its froth, so in the long run Nvidia stock will recover a lot of the premium it had earned before the correction. This is a classic case of a stock loosing too much too soon. The company still has excellent chips in all the right areas, including gaming, artificial intelligence and autonomous driving. Since these trends are not going away anytime soon, neither is NVDA stock. Much like AMZN, if the markets in general are higher, then this will be one of the blue-chip stocks that will be higher. Add to that the fact that it is much less frothy than than its competitor Advanced Micro Devices (NASDAQ:AMD), and it's no wonder that this is a solid S&P 500 stock to buy. Click here for a bonus video on Apple (NASDAQ:AAPL) stock. This is a wild one but there are clues. Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality Compare Brokers The post 3 Blue-Chip Stocks That Will Power Through Market Turmoil appeared first on InvestorPlace.
What Investors Can Expect from Intel's Q4 Earnings(Continued from Prior Part)A record year for Intel Last year was a strong one for Intel (INTC). In 2018, it reported impressive growth in the PC and data center markets, from which it earns more than
What Investors Can Expect from Intel's Q4 EarningsHow was 2018 for Intel? Last year was a strong one for Intel (INTC) from an earnings perspective but a weak one from a stock performance perspective. The company is set to report all-time record
Investing.com - Stocks started the holiday-shortened week lower Tuesday as concerns about global growth weighed on Wall Street.