47.37 0.00 (0.00%)
After hours: 4:45PM EDT
|Bid||47.33 x 3100|
|Ask||47.45 x 800|
|Day's Range||46.60 - 48.00|
|52 Week Range||42.36 - 59.59|
|Beta (3Y Monthly)||0.60|
|PE Ratio (TTM)||10.69|
|Forward Dividend & Yield||1.26 (2.86%)|
|1y Target Est||N/A|
DEEP DIVE Semiconductor stocks led a broad U.S. rally on Tuesday, as investors cheered both the latest comments about economic stimulus from European Central Bank President Mario Draghi and President Donald Trump’s tweet about his talks with China’s leader, and as the Federal Open Market Committee began its two-day policy meeting.
(Bloomberg) -- Shares of semiconductor companies rallied on Tuesday as optimism that trade tensions between the U.S. and China could be easing pushed investors to look past a growing consensus that an industry rebound is unlikely to occur in the second half of the year.The Philadelphia semiconductor index advanced as much as 5%, compared with a 1.4% increase in the S&P 500 Index. Among notable gainers, Nvidia Corp. rose 6.8% while Micron Technology Inc. jumped 6.8% and Western Digital Corp. added 6.4%. Texas Instruments Inc. gained 4.2% while Intel Corp. rose 4%.The advance came after President Donald Trump said he had a “very good” phone conversation with Chinese President Xi Jinping and that he would hold an “extended meeting” with him at the G-20 meeting. Trump had previously threatened to raise tariffs if Xi didn’t sit with him at next week’s meeting in Japan.Chipmakers have been highly correlated to the trade issue, as the companies derive a hefty percentage of their revenue from China. The country is also a key part of their supply chains. Recently, semiconductor volatility rose after the Trump administration blacklisted Huawei, a major consumer to a number of semiconductor companies. Last week, Broadcom Inc. cut its full-year sales forecast because of trade risks and its Huawei exposure.“Huawei casts a large shadow,” Stifel analysts wrote on Tuesday. “There is no getting around its significance.” Analyst Brian Chin lowered his estimates for a number of semiconductor companies for the second half of the year, saying that the industry’s “malaise” in May was “now too acute to ignore.”That view was echoed by analysts at KeyBanc Capital Markets in a report dated June 17. The firm wrote that “the recent U.S./China trade war escalation, including the Huawei ban, has dashed hopes for a 2H recovery for broad-based semiconductors.” Analyst Weston Twigg added that a trip to Asia “left us more cautious” on the industry, and that there was an “increased risk to forward estimates” as the trade dispute “has led to a meaningful decline in bookings.”Deutsche Bank analysts recently returned from an Asia trip of their own, emerging “more cautious on the semiconductor and semicap sectors” as a result, “especially given that the often promised H2 rebound is looking increasingly optimistic.”Analyst Rob Sanders wrote that trade tensions were “significantly elevating uncertainty surrounding near- and mid-term business conditions,” and that “in most instances, this uncertainty is acting as a headwind to demand.”The escalation in trade-related tensions came at a time when the industry has already been struggling with weak demand and high inventory levels. According to the Semiconductor Industry Association, total semiconductor sales sank 17.7% in April, its most recent month of data.To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jennifer Bissell-Linsk, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Advanced Micro Devices Inc. shot up 5.6% in very active trading Tuesday morning, putting them on track for their first gain in six days amid a broad rally in chip stocks. Volume of 37.4 million shares made AMD's stock the most actively traded on major U.S. exchanges. The stock had tumbled 12% over a five-session losing streak through Monday. AMD's rally comes as the PHLX Semiconductor Index climbed 4.6%, with all 30 components gaining ground, led by the 6.5% jump in Micron Technology Inc. shares. Meanwhile, chipmaker Intel Corp.'s stock rallied 3.7% to pace the Dow Jones Industrial Average's gainers.
Unless there's a negative update about another escalation in the US-China trade war, the expected rate cut decision could trigger market-wide buying, including in tech stocks, in the near term.
Apple (AAPL) is holding out hope that China will target it as its trade war with the US escalates. The US last month blacklisted Huawei, leading US suppliers to give the Chinese technology star a wide berth. Google has reduced its business dealings with Huawei, while Microsoft (MSFT) has stopped selling Huawei laptops on its digital shop.
China has warned American technology companies Intel (INTC), Qualcomm (QCOM), and others of dire consequences if they respond aggressively to the trade restrictions that American authorities have slapped on Huawei. Last month, the Trump administration blacklisted Huawei as a national security risk, thereby prohibiting suppliers with operations in America from doing business with Huawei.
Just when everyone thought Qualcomm (NASDAQ:QCOM) had solidified its market dominance by ending one battle, two other significant obstacles appeared yo hamper Qualcomm stock.Source: Shutterstock The intensified trade war with China threatened growth in its largest market. Moreover, an FTC ruling that Qualcomm violated antitrust law wiped out most of the recent gains in QCOM stock. However, even though uncertainty remains, Qualcomm's problems are a reason to readjust expectations rather than positions.After Apple (NASDAQ:AAPL) settled its ongoing lawsuit with Qualcomm, QCOM surged by more than 50% in less than two weeks. After that move, I figured it would see a pullback.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe renewed trade war and the FTC's antitrust ruling against QCOM made me even more correct than I had expected. Those events took QCOM back to the $65 per share level by late May. It has since recovered to just under $70 per share. Still, it remains well below the $90 per share peak achieved after the Apple settlement. * 7 Top-Rated Biotech Stocks to Invest In Today Uncertainty and Qualcomm StockOf course, Qualcomm has begun the process of appealing the ruling. For this reason, Qualcomm wants to delay the enforcement of the antitrust decision. LG (OTCMKTS:LGEAF) wants it enforced immediately for fear they will have to sign another deal that they perceive as unfair.Investors should also question if their recent deal with Apple represents a true "settlement." Apple has begun discussions to buy Intel's (NASDAQ:INTC) German modem unit. This is important because this unit makes up the former Infineon, a company that had tried to compete with Qualcomm. Buying this unit could make it possible to develop the needed chipsets internally.For these reasons, I understand the recent sell-off. Most profit forecasts revolved around the company holding more pricing power. Additionally, we know Apple has tried for years to free itself from dependence on Qualcomm. If Apple develops a comparable modem chip, QCOM will suffer. The Long-Term Case for Qualcomm StockHowever, despite the challenges, I remain bullish on Qualcomm.First, the present and the future of wireless still depend on Qualcomm. Much like Microsoft (NASDAQ:MSFT) had a stranglehold on PC operating systems in the 1990s, Qualcomm dominates the market in the chipsets that make smartphones possible.Even though Apple fought for years to not pay Qualcomm's licensing fees, the need for the company's modem chips forced the company to settle. Moreover, the fact that Intel struggled to adequately compete may also mean that Apple's attempt to develop these chipsets internally may not succeed.Right now, investors can buy such dominance for only 13.3 times forward earnings. Profit growth will stagnate this year. Admittedly, earnings could also take a hit if the government starts enforcing the antitrust settlement immediately. However, analysts project a 37.1% increase in earnings next year. They also predict annual profit growth will average 27.05% per year for the next five years.Still, even if the government enforces the settlement now, investors in QCOM stock should consider what I see as a forgotten and underrated dividend. Its current annual payout of $2.48 per share yields almost 3.6%. Moreover, this payout has consistently risen since the company began dividend payments in 2003. Investors should also note that these increases continued, even in recent years when the dispute with Apple hampered the growth of Qualcomm stock. Concluding Thoughts on Qualcomm stockThe trade dispute and the FTC ruling change the expectations surrounding QCOM stock, but they should not change the buy case. Yes, the recent events return QCOM to much the same position it held when it fought its costly dispute with Apple.However, investors need to remember that at least for now, we have a lucrative monopoly that should soon benefit from the technological quantum leap. Those who buy now pay a forward multiple of 13.3. Moreover, QCOM has become underappreciated as a dividend stock.It yields almost 3.6% and has maintained close to an annual track record of payout hikes for the last 16 years. The long-time dispute with Apple did not slow these increases, the more recent challenges likely will not either.Qualcomm stock has brought a great deal of frustration to investors. However, those that let emotions get the better of them could miss out on one of the more significant growth and income equities in today's market.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Don't Let Uncertainty Make You Miss out on This Qualcomm Stock Weakness appeared first on InvestorPlace.
There's no getting around the fact that otherwise-renowned chipmaker Intel (NASDAQ:INTC) has been disappointing this year. Sure, the U.S.-China trade war has taken the wind out of the semiconductor industry's sails. But as a recognized leader from decades of innovation, you expect something bigger. Right now, the INTC stock price is a little over $46, barely breaking above even for the year.Source: Shutterstock Internal problems continue to plague Intel. Of course, the company is struggling to find its way after an embarrassing fraternization incident that ousted former CEO Brian Krzanich. It's a situation that stakeholders in INTC stock could do without. The semiconductor firm's product pipeline is uninspiring, and oft-mentioned production woes continue.Then you consider the external threats to the Intel stock price. Advanced Micro Devices (NASDAQ:AMD), historically an annoying low-cost leader from Intel's perspective, is doing more than just buzzing around. At the latest Computex 2019, AMD revealed an array of products that are designed not just to compete with INTC, but to overtake it.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Quality Cheap Stocks to Buy With $10 But in so doing, we have a strange irony. From a legacy point-of-view, AMD chips have largely won the value argument, while Intel dominated the premium segment. In the markets, though, AMD shares have grabbed top-shelf valuation. On the other hand, INTC stock looks incredibly underappreciated.While I'm not really big on any semiconductor firm based on the escalating trade tensions, I think Intel stock offers an interesting contrarian argument. Here are three reasons why: Little Separates Intel and AMDIf you read some of the fanboy messages on various online forums, you'll come across a lot of hyperbole regarding AMD. Mostly, it's on the theme that AMD will overtake Intel as the leader in high-end semiconductors. Forecasts of Intel's imminent demise also accompany these posts.But take aside the emotions, and what is the real picture? According to DigitalTrends.com, not much separates Intel and AMD. Sure, current news focuses on the latter: after all, we Americans love a good fight, especially from a plucky underdog. But in the broader framework, we're still mostly dealing with established dynamics.Primarily, AMD still considers lower and mid-tier products as its bread-and-butter. In contrast, the Intel stock price on a longer-term basis benefits from the underlying company's premium-end chips. As Computex 2019 demonstrated, AMD has a lot to say about that. However, their desired overhaul won't occur overnight.Plus, holders of INTC stock can still rest easy knowing that they have the edge in certain segments. For example, Intel still leads in gaming chips, especially for serious or professional gamers. And yes, the latter category is very much a thing, and a growing one at that.Also consider PC laptops. AMD has tried and continues to attempt to break down Intel's market share. But right now, INTC is still the unquestioned leader. Again, while AMD is on the rise, it may take considerable time before they can damage Intel. That of course helps the contrarian case for INTC stock. AMD's Flagship Processor Might Not Kill Intel StockIf you're simply looking at the INTC-AMD battle from a product-pipeline perspective, it's hard not to get a little nervous about the Intel stock price longer-term. That's because the smaller of this fierce sibling rivalry is pulling out all the stops.The upcoming lineup of the Ryzen 3000 series of CPUs has many Intel execs quaking in their well-polished shoes. Of course, they're putting on a brave face, but then again, that's what they're supposed to do. Deep down, though, the temperature in their conference rooms is undoubtedly rising. This is the first time in over a decade that AMD will take the performance edge in multiple processor categories.And that's just on the product pipeline that AMD presented earlier. Just recently, though, insider rumors indicated that the company will release a Ryzen 3000 Threadripper chip with 64 cores by the end of this year. Theoretically, that would put a real hurt on Intel, and eventually INTC stock because of the battleground: AMD is finally competing with its much-larger and established rival in the premium-chip space.Again, on surface, the situation looks awful for Intel stock. Nevertheless, contrarians can take some solace in that AMD doesn't quite appear ready to launch its 64-core behemoth. It wasn't long ago that many tech experts believed the flagship Threadripper brand was dead. The reason? Simply, it didn't appear on AMD's product roadmap for 2019. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 But even if they did launch without a hiccup, I think AMD may suffer from a credibility overhang. Threadripper and its ilk are very expensive processors. Winning in the low- to mid-tier categories is one thing; winning in the premium category is an altogether different beast. INTC Stock is Just Better ValueAdvanced Micro Devices is showing the kind of moxy that you'd want all American businesses to demonstrate. For that, I think they deserve a lot of credit. But at the end of the day, AMD has an enterprise value of nearly $33 billion. In sharp contrast, INTC stock is looking at over $223 billion.Put another way, we have two competing narratives. If you're on the side of AMD, you believe that an already skyrocketing equity will again find a fresh catalyst; in other words, you're banking on lightning striking twice.But if you believe in Intel stock, I think your job is easier. For INTC to move higher, management must get its act together. Executives must also figure out how to start competing effectively again.These are big challenges. However, they're also reasonable ones considering their vast resources and legacy of excellence. As a contrarian bet, INTC stock is probably among the best available.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 3 Reasons Why Intel Stock Remains An Interesting Contrarian Buy appeared first on InvestorPlace.
Intel (NASDAQ:INTC) stock is cheap. The Intel stock price sits at just over 10 times earnings. Combined with a 2.7% dividend yield, there's a value case for INTC stock at current levels.Source: Shutterstock But I've been skeptical about that case for some time -- and recent developments don't change my mind. Fundamentally, Intel stock looks cheap. As a business, however, there are plenty of reasons why that is, and should be, the case. Fundamental Concerns for INTC StockIntel stock was rolling not all that long ago. As of mid-April, the Intel stock price had risen nearly 30% in 2019 alone. And then first-quarter earnings sent the stock plummeting. INTC stock dropped 9%, wiping out some $23 billion in market value. * 7 Top-Rated Biotech Stocks to Invest In Today The catalyst was reduced guidance for 2019. Analysts and investors had been looking for a rebound in the second half of the year, after what looked like an early-year pause in datacenter spending. Intel's guidance undercut that case.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIntel followed up a little over two weeks later with its three-year outlook -- and that, too, disappointed. Intel is looking for flat sales in PCs -- which investors might see as overly optimistic. Gross margins are going to be pressured amid Intel's 10nm ramp. Three-year revenue growth, on the whole, even with double-digit growth in datacenter, is supposed to be in the low single digits.It's worth remembering that in both cases, INTC stock fell -- and not because of investor overreactions. The guidance is coming from Intel itself and, in combination, it suggests that Intel's growth is going to be rather meager for three years. Cyclical semiconductor stocks with minimal growth aren't going to see big earnings multiples, which, alone, suggests that the Intel stock price at least is in the right ballpark. How Many Mistakes?There's a broader problem with the disappointing guidance, however. It's difficult for investors to trust Intel at this point, after a series of missteps. As Dana Blankenhorn pointed out last month, Intel is four years late in 10nm; Taiwan Semiconductor (NYSE:TSM) already is at 7nm.Last year, it was discovered its chips were susceptible to hackers. This year, chip shortages have put its datacenter lead at risk, allowing Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) to take share in a market that Intel once dominated.In CPUs, Intel seems at risk as well. AMD's new Ryzen line has been a hit. Intel's shortages are frustrating customers like Dell Technologies (NASDAQ:DELL). Intel's long dominance in PCs may have allowed it to rest on its laurels; it does not, at the moment, have an answer for AMD's rise.So, can investors trust that PC revenue is going to stay flat -- when AMD clearly is taking market share? Is datacenter revenue going to rise double-digits every year when Intel can't keep up with even slower demand? Guidance was disappointing -- and it looks far from certain Intel will be able to even meet its projections.The fundamentals don't look great. The qualitative aspects look even worse. Nvidia and, in particular, AMD clearly are taking share. Intel not only doesn't have an answer right now, it actually seems to be shooting itself in the foot. Given trade war concerns and overall chip weakness, there are plenty of reasons for investors to be worried. The Intel Stock Price Can Get CheaperAll told, it's not a surprise that Intel stock has fallen so far. Indeed, it wouldn't be surprising if Intel stock fell further. 2019 expectations clearly are at risk. 2020 and 2021 growth doesn't look particularly impressive. In a chip space with no shortage of cheap stocks -- think Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM), to name two -- INTC hardly looks like an attractive pick. * 10 High-Yield Monthly Dividend Stocks to Buy Admittedly, that could change. But it requires that Intel start fixing its mistakes -- and start improving its products. It seems we're still a ways off on both fronts. Until then, INTC is likely to trade sideways at best.As of this writing, Vince Martin has a bullish options position in Dell Technologies. He has no positions in any other securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Repeated Mistakes Are Bound to Haunt Intel Stock appeared first on InvestorPlace.
(Bloomberg) -- Since Japan launched its first deep space probe in 1985, the photographs have been taken in a relatively low-tech way, by pointing cameras at objects in the cosmos and letting them run. Whatever is captured gets sent back to Earth, where people cull the material for the most beautiful shots.Problem is, this dragnet approach uses up precious bandwidth and batteries. So Japan’s space agency is experimenting with a camera that’s more discriminating: It decides which pics have the best light, angle and composition, and beams back only those. Using artificial intelligence on powerful, large computers? That’s no big deal. But it’s a lot harder on a tiny spacecraft with its serious energy constraints.Enter LeapMind Inc., a Tokyo company specialized in “edge computing,” or running computations not on a central server or even a PC, but on remote devices with limited processing power and no internet connection. The idea is to bring AI to traffic lights, security cameras, home appliances—or even the odd space probe.Artificial intelligence can do amazing things, but it’s still rare because the math takes enormous computing power and loads of electricity. This means driverless cars must be something akin to data centers on wheels, with dozens of processors that can get hot enough to boil water. Edge computing promises to make AI work inside the thousands of smaller gadgets and machines in people’s homes and offices.“The hurdles to putting AI in actual products are really high,” said LeapMind’s founder, Soichi Matsuda, 36. “There are all kinds of severe limitations: price, power-consumption, dealing with exhaust heat.”LeapMind is just one of dozens of companies working on edge computing. Google and Amazon.com have led the way, but last year venture capital firms invested about $750 million in startups working in the field, according to CB Insights, up 26% from the previous year. In 2017, a group led by Intel Capital invested $10 million in LeapMind.They’re all seeking to drastically simplify the way AI works, so that everyday devices can take voice commands, respond to gestures and see the world around them. The technology would enable a home security camera to tell family members from strangers or allow sensors sewn into clothing to track your health, without sending private information to the cloud.“Edge AI is becoming more and more important, especially in areas where latency, power consumption, connectivity and security matter,” said Anthony Lin, senior managing director at LeapMind investor Intel Capital.In order to understand what makes edge computing so difficult, it helps to recall your high school algebra. Each variable in a typical AI algorithm is built out of a 32-digit string of ones and zeros that allows for 4.3 billion possible combinations. (They look like this: 0010001001000.0000101001000010110.) The detail is what gives AI its predictive power.The trick in edge computing is shaving down the numbers so they can be processed by smaller chips, but without losing too much precision. It’s a challenge because for every digit that’s lopped off, there’s an exponential loss in expressiveness.This is why even the smallest achievements in edge computing are treated as major victories. In March, for example, when Google announced it finally managed to get a speech-recognition function to run offline on its smartphones, at least one Google engineer called the effort “heroic.” For most users the difference is probably unnoticeable, but making it work without being connected to the internet required chopping the program’s variables down from 32 to 8 digits, or bits.LeapMind is working at a level that’s orders of magnitude smaller, just 1 or 2 bits, according to Matsuda. It’s the computer science equivalent of boiling the English language down to just four words and somehow still being able to convey a lot of meaning.“When we started working on this in 2015, we knew that someone like Google would eventually do 8 bits,’’ Matsuda said. “So we had to aim higher.’’The techniques developed by LeapMind are sufficient for many, but not all tasks. You couldn’t run a driverless car with them, for example. But they’d be useful for driver-assist functions or other less-exacting work.Which brings us back to the space agency’s photography problem.As it stands, JAXA’s probes can’t devote scarce computing power to getting visually-pleasing photos, no matter how valuable they are for PR purposes, because it would come at the expense of doing actual science. The photos that the public sees now have been taken in the process of doing other work, not specifically for their beauty.That’s why JAXA researcher Takayuki Ishida decided to try using LeapMind’s tools to build a smart camera. He started by taking 10,000 photos of planet and probe models, shot from different angles and with different juxtapositions, and ranking them in terms of aesthetic appeal.Then he used LeapMind’s software to create a pattern-matching algorithm that learned to differentiate between good photos and bad ones. The code was compact enough to run on a single chip that consumed no more electricity than a 10-watt light bulb.JAXA declined to comment, but Ishida described his experiments in a paper he presented at a February conference held by LeapMind.If the system works, it would be a small step forward for space exploration and perhaps a big leap for everyday devices closer to home.“If you want to add AI to a television or a laptop or any other existing product, you have to re-design things from scratch because most of the power supply is already spoken for,’’ said LeapMind’s Matsuda. “Power is the big constraint.’’To contact the reporter on this story: Pavel Alpeyev in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Jason Clenfield, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Intel (INTC) is acquiring networking technology startup Barefoot Networks. Although the financial terms of the deal have not been disclosed, what is obvious is that the deal opens a path for Intel to diversify its chips business and move into the chip technology market.
Apple is in talks with Intel (INTC) about purchasing the chip company’s smartphone modem business, according to a report from The Information citing people familiar with the matter. Intel said in April that it would exit the smartphone modem business, and it later announced its intention to sell the business.
The Dow Jones Industrial Average has gained nearly 12% so far in 2019. It doesn't seem like a whole heck of a lot, but considering the topsy-turvey markets of 2019, it's a pretty strong lift. That gain was driven by the majority of the Dow 30 as most of the stocks in the DJIA index contributed to its postive year-to-date gain.Microsoft (NASDAQ:MSFT) is the biggest winner of the bunch, gaining more than 30%. But owing to the odd price-weighted nature of the index, it's likely Visa (NYSE:V), with a 28% gain and a higher share price, that has been the biggest driver behind the Dow's gains.Not every component of the Dow Jones today has had a strong year, though. Five of the index's 30 stocks have declined so far this year. But not all of them make the list of the five worst Dow Jones stocks in 2019, which we'll recount in greater detail going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today For reasons that go beyond pure performance, these five components have had the roughest year so far, which means they have the most to prove in the second half of 2019. Walgreens (WBA)Source: Mike Mozart via FlickrWalgreens (NASDAQ:WBA) is the easiest pick on the list. That's somewhat ironic considering that Walgreens is one of the index's newest members, replacing General Electric (NYSE:GE) just last year. WBA stock far and away has had the worst performance in 2019: its 22.6% decline is almost exactly twice as steep as that of the index's second-biggest decliner. WBA touched a five-year low late last month before a modest rally in recent weeks.As I wrote in April, disappointing store-level execution clearly has been a factor. But what might be more worrisome for WBA is that the entire retail pharmacy industry seems to under threat. Shares of rival CVS Health (NYSE:CVS), too, have touched a multi-year low.Smaller Rite Aid (NYSE:RAD) continues to plunge, with a hefty debt load adding to the pressure. Front-end sales aren't growing, and in pharmacy higher generic prices are compressing already-thin margins.WBA stock is cheap, now at less than 9x forward earnings. But right now, Walgreens looks a lot like most other retailers - and that will have to change for Walgreens stock to reverse its performance in not only 2019, but the last few years. Dow Inc. (DOW)Source: Roy Luck via Flickr (modified)It's a little unfair to put Dow Inc. (NYSE:DOW) on this list. DOW shares actually have gained 6% since they were spun off from what is now (again) DuPont (NYSE:DD) on April 1st.But DOW is part of the DowDuPont spinoff, a hugely complicated financial engineering project that was supposed to create real value for shareholders. It hasn't happened. DWDP shareholders received one share of Corteva (NYSE:CTVA) and one share of DOW for every three DowDuPont shares they owned. At current prices, that totals about $50 in value. DWDP shares closed 2018 near $54 - after declining 25% last year.This was a case where many value investors saw significant upside. Yet trade war concerns and post-spin trading have led DWDP to destroy value, at least so far. DOW and its former siblings still have time, and room, to rally. But a lot of smart investors likely see the YTD performance as among the most disappointing in their portfolios. Intel (INTC)Source: Shutterstock Performance-wise, Intel (NASDAQ:INTC) hasn't been a bad stock in 2019. It's underperformed the market, but a 0.5% decline actually turns very slightly positive when accounting for dividend payments.Still, 2019 hasn't been a good year for Intel. It's suffering chip shortages. It's still behind in 10nm -- and about four years late. Rival Advanced Micro Devices (NASDAQ:AMD) is gobbling up market share in CPUs. Apple (NASDAQ:AAPL) settled with Qualcomm (NASDAQ:QCOM) in large part because Intel couldn't move quick enough to get the iPhone to 5G.Intel still is a behemoth in the chip space, and the company still has time to right its ship. With INTC stock at barely 10x earnings, there's upside if and when that happens. But the company's performance so far this year inspires little confidence, which has been much weaker than a flattish stock price would imply. 3M (MMM)Source: Shutterstock The 11.4% decline in 3M (NYSE:MMM) shares so far this year is the second-worst performance in the Dow. But no component has posted a worse quarterly report than 3M did with its Q1 release in late April. 3M stock plunged 13%, its worst one-day decline in over 30 years. The drop was big enough to on its own pull the index down over 100 points.MMM stock still hasn't recovered: it would drop nearly another 20% in the following weeks before bottoming of late. And there's a case for the stock after the big decline, as James Brumley argued earlier this month. A 3.4% dividend yield helps the argument, and 3M's diversified business should allow it to ride out any further near-term or market volatility.Still, Q1 was an obvious concern: stocks like 3M don't fall 25% in a matter of weeks for no reason. And it was the automotive and Chinese markets that led to the poor quarter. Neither seems likely to rebound sharply all that soon. At the very least, it's going to take a lot more than one good quarter for 3M to make back what it lost after Q1. Pfizer (PFE)Source: Shutterstock It's a bit unfair to put Pfizer (NYSE:PFE) on this list. Pfizer certainly hasn't had a terrible year. PFE stock is down 2.6%, the third-worst performance in the index. But drugmakers generally underperform in bull markets, and many drug stocks have done worse in 2019. A 3.4% dividend yield offsets most of those losses anyhow.That said, Pfizer hasn't had a great year, either. Rival (and fellow Dow component) Merck (NYSE:MRK) has gained 8%-plus. And it's hard not to get the sense that PFE, which traded mostly sideways for over three years in the middle of the decade, is back to being stagnant. There doesn't seem to much of a catalyst on the horizon to change the Pfizer story, while external pressures on the industry continue to mount.It's true that, even this year, PFE shareholders could have done worse. But given that 25 Dow Jones stocks are up YTD, it's obvious they could have done better.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post The 5 Worst Dow Jones Stocks So Far in 2019 appeared first on InvestorPlace.
The Trump administration has ordered American companies not to do business with Huawei, claiming the Chinese company represents a threat to national security.
Over the past decade-plus, Intel's INTC prowess in chip design and manufacturing has enabled it to dominate the PC and server processor markets. Although it missed the boat in smartphone processors, Intel's near monopoly in server central processing units, or CPUs, has allowed the wide-moat chip titan to enjoy stellar profitability amid a declining PC market while riding the cloud wave to substantial growth in its data center group. Although AMD has minimal share today, the combination of Intel's 10-nanometer process technology delays and AMD's upcoming 7-nm Epyc 2 has led the market to anticipate substantial share gains for AMD and the demise of Intel.
The first such vessel set to hit markets is Ehang Air Mobility Group’s Ehang 216, which first took flight in 2014 with a range of 22 miles, or 25 minutes of flight time. The 2-passenger, 570-pound aircraft is expected to start selling for $300,000 sometime next year, and is expected to receive strong interest from emergency responders, air taxi services, and tourist flight operators. Ehang is an alumni of Microsoft Corp.'s (MSFT) incubator program formerly known as Microsoft Accelerator.
Nvidia was long known as a supplier of graphics chips for personal computers to make video games look more realistic, but researchers now also use its chips inside data centers to speed up artificial intelligence computing work such as training computers to recognize images. To do so, Nvidia's so-called accelerator chips work alongside central processors from companies such as Intel Corp and International Business Machines Corp.
In commodities, crude oil fell 0.7% to $52.17 a barrel after reaching an earlier high of $52.91. CFTC data showed the number of long speculative positions on oil had fallen to its lowest level since March last week after a seventh straight weekly drop. Gold futures slipped 0.6% to $1,337.15 a troy ounce while the U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 97.032.
(Bloomberg) -- Intel Corp. is reviewing its global supply chain amid the growing trade war between the U.S. and China, Chief Executive Officer Bob Swan said.Intel doesn’t believe tariffs are an “effective way to drive global trade,” Swan said on Sunday, and is encouraging the governments to engage in constructive dialogue -- even as the company tries to mitigate the impact of the dispute.“How do we move goods -- sometimes our customers will move their operations -- and how do we work the global supply chain so less product is coming directly from China to the U.S. that would be subject to tariffs?” Swan said in an interview with Bloomberg TV in Tel Aviv.Behind the trade war is President Donald Trump’s position that China and other trading partners are taking advantage of the U.S. For more than a year he has ratcheted up taxes on imports and encouraged U.S. companies to move production back home.Uncertain FutureUncertainty as U.S.-China trade negotiations enter a crucial stage is weighing on companies like Intel, as are signals from the Chinese government that it might not implement major stimulus measures -- as it has done in the past -- if the economy struggles. Intel already cut its revenue forecast for the full year, citing “China headwinds.”Apple Inc. has a backup plan if the trade war with China keeps escalating: Say goodbye to Beijing. Taiwan-based Foxconn Technology Group, Apple’s primary manufacturing partner, said it has enough capacity to make all iPhones bound for America outside of China.Alphabet Inc.’s Google is reportedly moving some production of Nest thermostats and server hardware out of China, avoiding U.S. tariffs and an increasingly hostile government in Beijing. It has already reportedly shifted much of its production of U.S.-bound motherboards to Taiwan, according to people familiar with the matter.The migration is taking place as both foreign and domestic companies seek to pivot production away from China amid Trump’s efforts to reset the parameters for global trade and manufacturing. Beijing is also showing growing signs of clamping down on American corporations, from Ford Motor Co. to FedEx Corp., within the world’s largest consumer market and production base.\--With assistance from Giovanni Prati and Ian King.To contact the reporter on this story: Gwen Ackerman in Jerusalem at firstname.lastname@example.orgTo contact the editors responsible for this story: Riad Hamade at email@example.com, Amy Teibel, Michael S. ArnoldFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Major U.S. chip makers, including Intel Corp. , Qualcomm Inc. and Xilinx Inc. , have quietly lobbied the Trump administration to ease its ban on sales to Chinese tech giant Huawei Technologies Co., Reuters reported Sunday. One source told Reuters that the aim was not to help Huawei, but to prevent harm to U.S. companies. Reuters said Huawei spent about $11 billion buying components from U.S. companies in 2018. The Trump administration announced the ban in May, after trade negotiations between the U.S. and China stalled. Earlier this month, the acting White House budget chief sought to delay implementation of the ban, the Wall Street Journal reported, arguing that the burden would fall on U.S. companies that did business with Huawei.
SAN FRANCISCO/WASHINGTON (Reuters) - Huawei's American chip suppliers, including Qualcomm and Intel, are quietly pressing the U.S. government to ease its ban on sales to the Chinese tech giant, even as Huawei itself avoids typical government lobbying, people familiar with the situation said. Executives from top U.S. chipmakers Intel and Xilinx Inc attended a meeting in late May with the Commerce Department to discuss a response to Huawei's placement on the black list, one person said. The ban bars U.S. suppliers from selling to Huawei, the world's largest telecommunications equipment company, without special approval, because of what the government said were national security issues.