200.15 +0.28 (0.14%)
After hours: 6:20PM EDT
|Bid||200.00 x 900|
|Ask||200.50 x 900|
|Day's Range||196.50 - 200.91|
|52 Week Range||139.24 - 234.88|
|PE Ratio (TTM)||21.95|
|Forward Dividend & Yield||2.00 (1.05%)|
|1y Target Est||N/A|
The S&P 500 Index ended a fairly quiet week nearly unchanged last week. With a fundamentally strong earnings season wrapping up, several businesses delivered additional good news in the form of payout raises.
U.S. tech companies can finally breathe easy, at least for the time being. U.S. Treasury Secretary Steve Mnuchin on Sunday said that the U.S.-China trade conflict has been put on hold. This certainly is good news for U.S. tech companies, particularly chipmakers, which have been reeling under pressure since the two countries sparked fears of a trade war by imposing tariffs and counter tariffs on imports from the two countries.
U.S. tech companies can finally breathe easy as Treasury Secretary Steve Mnuchin says that the U.S.-China trade conflict has been put on hold.
Stock futures rose Friday. Applied Materials fell on sales guidance. Chip-gear makers Lam Research and KLA-Tencor slid. So did Micron. Baidu fell as COO Lu Qi will leave the role and no longer oversee AI efforts.
Plenty of companies fit the former or the latter, many don’t fit either and a rare few can claim both descriptions. Micron Technology, Inc. (NASDAQ:MU) is one of the latter. Despite this, however, MU stock hasn’t been as much of a no-brainer trade as some investors may think.
Lam Research (LRCX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Zacks.com highlights: Lam Research, Mellanox Technologies, Logitech International, Amtech Systems, Cadence Design Systems and Citrix Systems
As demand for memory chips soar, a number of manufactures of equipment used to make those chips will get a big lift. Both Lam Research Corp. ( LRCX) and KLA-Tencor Corp. ( KLAC) should outperform on the “raging demand,” which includes demand for both DRAM and NAND flash memory, according to Cowen & Co.’s Krish Sankar. Sankar assigns Lam a price target of $285 and to KLA, a price target of $140.
If you are looking to invest in potential stocks from the semiconductor space, you can’t ignore NVIDIA Corporation (NASDAQ:NVDA). For the past two years, NVIDIA has been impressing investors with its stellar performance, wherein the company’s quarterly revenues have been advancing at a rate more than 50%, earnings have tripled and shares have displayed more than six-fold growth, consequently. The share price rally highlights that the slew of bad news related to the company, such as sluggish demand from cryptocurrency miners and Uber’s driverless-vehicle test incident, which prompted NVIDIA to suspend test drives for all its driverless vehicles, did not have any negative impact on investors.
Zacks.com highlights: General Motors, Boston Scientific, Lam Research, NRG Energy and Celanese
Cowen & Co.’s Krish Sankar today initiated coverage of several chip equipment makers, with KLA-Tencor (KLAC) and Lam Research (LRCX) topping his list, with Outperform ratings, while he’s more cautious about ASML (ASML) and Applied Materials (AMAT). As you might expect, the recommendations for both Lam and KLA are based on the raging demand for memory chips, including both DRAM and NAND flash, for which Lam is the dominant supplier of manufacturing tools. KLA also has a lot to offer in this regard, Sankar believes.
The equity markets continued to breathe easy as the U.S.-China trade concerns abated with President Trump pledging support for the beleaguered Chinese telecom firm, ZTE, and the Qualcomm-NXP merger review process getting a roll-on with urgency from the top administration of China. A high ROE ensures that the company is reinvesting its cash at a high rate of return. ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company.
Applied Materials (AMAT), KLA-Tencor (KLAC), and Lam Research (LRCX) are witnessing strong growth in the memory and logic segments. Revenue from memory almost doubled on a YoY (year-over-year) basis as the AI (artificial intelligence) trend picked up. On Applied Materials’ fiscal 1Q18 earnings call, the company’s CEO, Gary Dickerson, explained how the AI trend is boosting demand for memory and logic.
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company.
Applied Materials (AMAT) is reporting strong revenue growth as the consumer base for electronic devices broadens with the advent of the Internet of Things, big data, and AI (artificial intelligence). The company earns more than 65% of its revenue from its Semiconductor Systems division. The world’s largest foundry, TSMC (TSM), is one of the Semiconductor Systems division’s customers.
With most semiconductor equipment makers already having reported earnings, Citi shared its takeaways on the sector and updated its wafer fab equipment model Monday. The Analyst Analyst Atif Malik upgraded ...
In the previous article, we saw that Applied Materials (AMAT) crossed the $1 billion quarterly revenue mark in fiscal 1Q18 and is growing steadily every quarter as demand from memory customers increases. Its non-GAAP (generally accepted accounting principles) gross margin expanded 3.6% from 42.7% in fiscal 1Q16 to 46.3% in fiscal 1Q17 driven by high volumes and a rich product mix. On the other hand, KLA-Tencor (KLAC) improved its gross margin by 1.5% from 62.5% in 1Q17 to 64% in 1Q18.
Applied Materials (AMAT) supplies SME (semiconductor manufacturing equipment) to chip makers all over the world. As the world’s semiconductor manufacturing is concentrated in the APAC (Asia-Pacific) region, it’s the largest market for AMAT and its peers Lam Research (LRCX) and KLA-Tencor (KLAC). South Korea (EWY) is their largest market, providing 30% of their revenues.
For instance, Advanced Micro Devices’ (AMD) and Intel’s (INTC) stock prices rose post-earnings as they reported strong guidances, but Lam Research’s (LRCX) and TSMC’s (TSM) stock prices fell post-earnings as they reported weaker guidances. The next big earnings are those of Applied Materials (AMAT), which it’s due to report on May 17.