|Day's Range||19.79 - 19.85|
Let's dive into three tech stocks we found with our Zacks Stock Screener that growth investors might want to consider buying right now as the stock market remains near its new highs...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. When Microsoft Corp. co-founder Bill Gates tried to build an experimental nuclear reactor in China, his plan was thwarted by U.S. foreign investment restrictions. At Bloomberg’s New Economy Forum this week, Gates described the scuttled reactor project as “a five-year setback for technology.”A chorus of industry leaders, economists and researchers echoed Gates’ cautionary tale during the event in Beijing. Trade tensions between China and the U.S. have spilled into business and economics in tangible ways, they warned, including a slower pace of technological progress and scientific research. If relations between the two superpowers don’t get back on track soon, “we’re in danger of going back to the dark ages,” said Yahoo co-founder Jerry Yang. “We need to reestablish some level of trust between initiatives that can really promote and benefit the people of two countries.”Open systems will inevitably win out over closed ones, Yang argued. He also cautioned U.S. companies that doing business in China may require some uncomfortable compromises.“The challenge with doing business across countries with different value systems is really starting to be more apparent,” he said. “Foreign companies that choose to operate in China have to face the fact that you have to comply with their rules.”Several Chinese tech company officials said they still wanted to work with American companies and that together, the two countries could further technological progress. “We’re in the 5G era, let’s not go back to the 2G or 3G era, where we had different standards,” said Lenovo Chief Executive Officer Yang Yuanqing.Cooling political relations between Washington D.C. and Beijing have slowed international collaboration. In May, the U.S. subjected Huawei Technologies Co. to a variety of sanctions, citing security concerns. The company and other Chinese tech sector boosters believe the move was motivated more by fear of China’s rising influence over fifth-generation networking gear and artificial intelligence.Huawei is Micron Technology Inc.’s largest customer, and on Thursday in Beijing, Micron CEO Sanjay Mehrotra told Bloomberg TV that the company has no plan to move U.S.-based manufacturing out of the country to facilitate supply to China.Mehrotra was one of more than a dozen top tech company executives to attend the two-day forum, which was organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News. Most were cautiously optimistic that one way or another, tech companies would find a way to work across borders.It’s important to differentiate between the stance of the U.S. government and that of industry, said Parag Khanna, Managing Partner at FutureMap. “There’s always been a ‘silicon curtain’ when it comes to social media for U.S. companies,” he said, referring to the separate ecosystems that have developed in the U.S. and China. “But on hardware side, that’s the last thing they want.”He said the head of supply chain at a major U.S. semiconductor supplier told him recently that they “don’t have a plan B for international revenue and access to a large important market like China. We have to find a way to keep selling to China.”Zhu Min, chairman of the National Institute of Financial Research at Tsinghua University, put a finer point on it. Chinese imports accounted for about 65% of the $480 billion global chip market, he pointed out. “If trade friction stops chip exports to China, I think the whole global chip industry will break down,” Zhu said.While global business leaders may want to sidestep the political and trade tensions and simply get back to making money, that no longer seems possible, said Diana Choyleva, chief economist at Enodo Economics.“This is about a clash of ideology in terms of how the different systems view the internet, data, privacy and digital governance,” she said. “Whoever wins the technology race will be the global dominant power.”A growing digital divide threatens to be expensive, as companies spend more on their own technological independence and compensate for the limitations of their domestic markets, said Hong Chen, CEO of the Hina Group, a Beijing-based advisory and private equity firm.“But it also creates opportunities,” he said. Huawei, for example, might not have built its own mobile operating system if it knew it could rely on Google’s Android operating system. American sanctions were “a wake up call,” he said, spurring Huawei to create its own operating system that now attracts a whole new generation of app developers.For smaller companies without Huawei’s deep pockets, the opportunities are more constrained. Spencer Deng, a co-founder of robotics startup Dorabot, which is backed by Kai-Fu Lee’s Sinnovation Ventures, said he built his business on the premise of unrestricted, cross-border trade.“A separate supply chain will create a slower movement of goods,” he said. “That causes a slowdown for business and it’s not good for anyone.”\--With assistance from Colum Murphy and Gao Yuan.To contact the reporter on this story: Shelly Banjo in Hong Kong at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Janet Paskin, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
When growth stocks break out, then pull back all the way to the correct buy point, should you bail? Is the stock a dud? Not always. A base on base may form.
Investing.com - U.S. futures tumbled on Wednesday after President Donald Trump repeated threats to increase tariffs against China if the two sides do not reach a trade deal soon.
BOISE, Idaho, Nov. 19, 2019 -- Micron Technology, Inc. (Nasdaq: MU) announced today that it will hold its fiscal first quarter earnings conference call on Wednesday, December.
The technology sector is made up of companies that, among other things, manufacture consumer electronics and their components, develop software, and provide information technology (IT) services like cloud hosting. Below, we'll examine the top three stocks in the tech sector for best value, fastest earnings growth, and most momentum. HP announced in November that its board of directors had unanimously rejected an unsolicited proposal from Xerox to acquire the computer manufacturing company.
Since founding his eponymous hedge fund in 2001, Dmitry Balyasny has earned a reputation as a risk taker. He chair’s Balyasny Asset Management’s (BAM) investment committee, and oversees the delivery of consistent, alpha-driven returns. In its Q3 13F filing, BAM reported over $14.5 billion in managed securities – and had made some interesting moves in the semiconductor industry. Interesting because Balyasny has built his strategy on outperforming the broader market indexes, but the chip stocks have underperformed of late. The question raised is, does BAM see something the rest of us do not?We used TipRanks databases to get an idea. The three chip stocks in which BAM invested heavily during the last quarter are AMD, Micron, and Nvidia. All three lost heavily in 2H18, saw volatility in 1H19, and have only recently begun to regain their losses and see share prices stabilize. The TipRanks data can show what the analysts think of these stocks. As we’ll see below, when we look at the analyst reports in detail, all three companies were hit by common factors in varying combinations. The results, for them and by extension the broader chip industry, are not pretty, but may also explain what Balyasny saw, and why he moved $100 million into semiconductors last quarter.Advanced Micro Devices (AMD)At $6.5 billion in annual revenue, AMD is a mid-size player in the chip industry, but it does rival sector leader Intel in the production of x86 chips, and with Nvidia (below) shares dominance of the GPU market.Like the rest of the chip industry, AMD was hit hard by the intensification of US-China trade pressures. The ‘trade war’ hurt the company – and its peers – both at importation of raw materials and the export of finished products from and to China.The company may be past its China troubles, however, as it has just reported its best quarter since 2005. Q3 2019 showed $1.8 billion in revenue, up 8.8% year-over-year and an even more impressive 17.5% sequentially. Gross margin, at 43%, was the best result since 2012, and net income for the quarter reached $120 million. EPS, at 11 cents, was 22% improved from Q3 2018. This quarter showed increased volume and average sales price for the new Ryzen desktop processor, and was a successful full first quarter of sales for the new 7nm Zen 2. Overall, the company’s computing and graphics segment was up 79% year-over-year.Balyasny's fund picked up 885,255 shares of AMD in Q3 for ~$25.7 million. Those shares are now worth more than $34 million.Hedge funds, however, invest for the long haul, so let’s check in with the analysts to see what AMD’s prospects are like. Here, things get a little cloudier.Ross Seymore, 5-star analyst with Deutsche Bank, looks at the company’s current situation and writes, “We remain impressed by the magnitude of growth and share gains AMD in delivering within its PC CPU business and early traction within 7nm Server CPUs. However, we fear that AMD's share gain assumptions in each of these markets for 4Q19 and 2020 appear to largely ignore competitive responses from peers, nor do they consider the normalization of CPU shortages.” Seymore believes that AMD’s recent success has pushed the stock above its sustainable price. He puts a Hold on AMD, with a price target of $29, suggesting a serious downside of 24%. (To watch Seymore's track record, click here)According to TipRanks, the consensus on Wall Street is that AMD stock is a “moderate buy” for investors. But TipRanks might as well have said “sell” — because analysts, on average, think the stock, currently at $40.37, could fall about 9% to $36.68. (See AMD stock analysis on TipRanks)Micron Technology (MU)Micron took a heavy hit in late September after reporting mixed Q4 results. Fiscal 2018 revenue came in at $31.8 billion, with net profits of $5.09 billion. Shares slumped on worries about NAND and DRAM growth forward, especially as the company lowered its forward guidance. Micron expects that flat demand to improve by year’s end and going into 2020, however, and predicts gaining market share in non-volatile memory and SSD sales. Any gain in market share, however, will likely come in a smaller market unless demand improves.MU was upbeat about the prospects for 5G chips in the automotive AI market. Micron’s graphics processors are popular in AI applications, and is poised to take advantage of increased demand as automakers make headway in autonomous vehicles – with concomitant demand for high-end chips in AI systems.Balyasny made his largest chip-stock maneuver with MU, adding over 900,000 shares to his fund’s existing holding. BAM now holds 1,056,939 shares of MU, with a current market value exceeding $50 million. This is an 11% increase from when the firm bought the shares. Again, BAM’s move on MU has been justified in the short term, but Wall Street analysts see longer-term clouds on the stock.Piper Jaffray analyst Harsh Kumar took issue with Micron’s upbeat outlook on future chip market conditions in his recent review of MU. He wrote, in setting a Hold on the stocks, “Despite the company calling for a better demand environment in the second half of the year, we believe market oversupply will continue to act as a headwind to significant pricing growth. In addition, we view the company’s gross margin guidance as concerning, particularly in the uncertain macro and geopolitical environment. In our view, we see earnings below $1 on a quarterly basis over the next several quarters.” (To watch Kumar's track record, click here)Kumar’s 46 price target on MU is a bit bearish, suggesting a downside of 3.5%. He is more pessimistic on the stock than his peers on Wall Street, however. The consensus rating on MU is a Moderate Buy, based on 16 Buy ratings, 8 Holds, and 2 Sells. The average price target is $55.26, indicating room for a 17% upside from current levels. (See Micron stock analysis on TipRanks)Nvidia (NVDA)At $12.9 billion in sales for fiscal 2018, Nvidia stood as the tenth largest semiconductor company in the world. The company focuses on GPUs for professional and gaming markets, in which it competes directly with AMD above. Nvidia is moving into the mobile computing niche, and like AMD, markets its chips to the automotive AI markets. The company’s products also have a strong presence in data centers.In its recent Q3 2020 report, NVDA showed revenue down 5% from the year-ago quarter, a reflection of the industry’s headwinds, but also beat the forecasts on both revenues and earnings. In better news, the company’s revised Q4 guidance was up 34%. Analysts, however, had expected a higher revision, and NVDA share slipped $5 after the report.NVDA is up 52% year-to-date, and has been performing strongly since June. The shares were gaining when Balyasny’s firm increased its initial holding by 167,259 shares. That purchase brought the full holding up to 172,759 shares, now worth over $35 million – a gain of $5 million since the initial purchase. Once again, BAM made a chip move that brought short-term profits.Not all of Wall Street’s analysts, however, are so sure about the chip stock. Writing from Needham just last week, 5-star analyst Rajvindra Gill says, “Although we are encouraged by increased hyperscaler visibility and strength coupled with strong gaming sales, we remain cautious regarding the competitive dynamics in the data center market, specifically in the training segment… we maintain our underperform.” Gill declined to set a specific price target with his Sell rating. (To watch Gill's track record, click here)Nvidia still has a Moderate Buy consensus rating, based on 29 recent reviews. The reviews include 21 Buys, 6 Holds, and 2 Sells. Shares are selling at a premium price of $204, and the average price target of $228 suggests an upside of 11%. (See Nvidia stock analysis on TipRanks)
Investing.com – Chip stocks climbed Monday as semiconductor companies like Micron Technology that count Huawei as an important customer were given a lifeline after the U.S. extended a license that lifts restrictions on U.S. companies from selling or transferring technology to Huawei.
In our opinion one of the best tools for ordinary investors who are on the hunt for new ideas is 13F filings. Once every quarter hedge funds with at least $100 million in total positions in publicly traded US stocks are required to open the kimono and disclose the number of shares and the total […]
The fate of your portfolio is written in the stars. Or at least it can be, if Daniel Greenberg and the professional pranksters behind the “Bull and Moon” investing app have their way.
The latest round of 13F filings from institutional investors is out, revealing to the world the stocks that some of the richest and most successful investors have been buying and selling. Takeaways From ...
Micron Technology stock has been punished by a downturn in the memory chip business since last fall. Here is what the fundamentals and technical analysis say about buying MU stock now.
Gary Silberg, KPMG Automotive Leader, joins Yahoo Finance to discuss how automotive technology is boosting the semiconductor business. He talks to Julie Hyman, Adam Shapiro, Pras Subramanian and Brian Cheung.
Nov.21 -- Sanjay Mehrotra, chief executive officer at Micron Technology, discusses China’s tech self-sufficiency, his supply chain and 5G capabilities. He speaks exclusively on “Bloomberg Daybreak: Europe” from the sidelines of Bloomberg's New Economy Forum in Beijing.
Semiconductors act as key drivers of strength in equity markets. Chaikin Analytics Chief Market Strategist Dan Russo and Bulleye Brief Author and Publisher Adam Johnson join Yahoo Finance’s Adam Shapiro, Julie Hyman and Heidi Chung to discuss on On The Move.