|Bid||190.45 x 900|
|Ask||190.64 x 900|
|Day's Range||187.50 - 195.62|
|52 Week Range||124.46 - 235.32|
|Beta (3Y Monthly)||2.47|
|PE Ratio (TTM)||42.95|
|Earnings Date||Nov 14, 2019|
|Forward Dividend & Yield||0.64 (0.33%)|
|1y Target Est||193.10|
The chip manufacturing giant issued strong Q4 sales guidance, offered upbeat remarks about 2020 5G phone demand and hiked its capital spending budget.
Investors' focus has locked in on semiconductor stocks following news of a potential "phase one" trade deal between the U.S. and China. Many chipmakers do production work in China and/or distribute products to Chinese companies, so the industry has suffered a nasty case of whiplash throughout the two or so years of the two countries' tariff spat.The upside is that the volatility still is coming out on their side. The iShares PHLX Semiconductor ETF (SOXX) has soared nearly 40% year-to-date, doubling the already better-than-average returns for the S&P; 500\. While trade enthusiasm has helped, the industry also is recovering from inflated inventory levels that have weighed heavily on the space.SunTrust Robinson Humphrey analyst William Stein wrote in October, "Looking through any tactical correction (due to tariffs), the big move is still to the upside. We believe patient investors will be rewarded for being long semis." And Goldman Sachs' Toshiya Hari wrote in July that chipmaking equipment companies' fundamentals could improve "sooner than previously expected."Here are five semiconductor stocks to buy to take advantage of an improving outlook for the industry. We took advantage of TipRanks' Stock Screener tool to pinpoint five chip stocks that have recently accumulated bullish sentiment from Wall Street analysts. Let's take a look. SEE ALSO: 12 Tech Stocks That Wall Street Loves the Most
Intel stock has lagged far behind the broader semiconductor industry's 2019 climb. So let's take a look at what to expect from Intel's upcoming Q3 2019 earnings results to see if INTC stock might be set to pop...
The typical Facebook employee stays with the company for just over 2.5 years, a Business Journal analysis shows. This is how that compares to other large Silicon Valley tech employers, like Cisco, Apple and Intel.
The Zacks Analyst Blog Highlights: Southern Company, Applied Materials, Vertex Pharmaceuticals, NVIDIA and Edwards Lifesciences
Chipmaker Nvidia is at the forefront of AI and machine learning, but earnings and share prices have dived. Here is what fundamental and technical analysis say about buying Nvidia stock now.
The stock market is near highs after rising for a decade. The best tool to answer the question is to look at segmented money flows. Please click here for a chart showing segmented money flows in 11 popular tech stocks.
Some investors believe that Intel (NASDAQ:INTC) stock is cheap because it trades at 11 times its forward price-earnings ratio. Others believe INTC stock isn't cheap because its earnings growth continues to decelerate. Source: JHVEPhoto / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm still upbeat about INTC stock, simply because Intel's free cash flow generation continues to be strong. That's a much better indicator of value, in my opinion, than earnings or sales. Intel expects 2019 free cash flow of $15 billion, 4.9% higher than a year earlier, and 27% above its five-year average of $11.8 billion. INTC generated $59 billion of free cash flow over the past five years, returning $55 billion (equaling 93% of its free cash flow) to shareholders in the form of dividends and repurchases of Intel stock. In fiscal 2018, Intel repurchased $10.7 billion of INTC stock at an average price of $49.38 per share. In 2014, it also repurchased more than $10.8 billion of its stock at an average price of $32.47 a share. Based on the stock's Oct. 14 closing price of $51.64, Intel's return on investment from these two large buybacks is 32%. * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) Furthermore, INTC has reduced its share count by almost 8% over the past five years.None of this would have been possible without its strong free cash flow. Free Cash Flow YieldBack in June, I suggested that Intel stock had, as in December 2017, become an attractive name for value investors. I went on to suggest that Intel stock was worth buying in the mid-$40s for those willing to hold it for five years or more. I recommended that shorter-term investors wait until INTC fell into the $30s before buying it. Let's assume for a second that INTC stock will fall to $39 per share. Based on Intel's fiscal 2019 guidance, its free cash flow yield at that price would be 7.8%. That's very close to the 8.8% free cash flow yield of the Pacer US Cash Cows 100 ETF (NYSEARCA:COWZ). COWZ is a passive ETF that invests in the 100 Russell 1000 companies with the highest free cash flow yield in the index. Of course,Intel stock is currently trading in the low $50s, giving it a more subdued 6.0% free cash flow yield, which is still much better than many of its semiconductor peers. The Dividend Yield of INTC Isn't Too ShabbyConsidering Intel's consistent free cash flow generation and its healthy 2.4% dividend yield, it's hard to understand why more investors don't buy INTC stock instead of riskier stocks like Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA).I do like the idea of getting paid to wait for Mobileye or one of Intel's other innovative businesses to take flight. InvestorPlace contributor Thomas Niel recently argued that the company's low 36% payout ratio, along with its five-year dividend growth rate of 6%, makes Intel a solid dividend-paying stock. I couldn't agree more. I recommend that long-term investors buy INTC stock if the company's share price falls into the $40s. At $52, investors who are more interested in dividend income than capital appreciation should buy INTC due to its excellent free cash flow generation. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) * 7 Hot & Trendy Generation Z Stocks to Buy * 5 Stocks to Buy in the Mighty Middle The post Intelas Free Cash Flow Makes INTC Stock a Buy appeared first on InvestorPlace.
Chip maker Nvidia (NVDA) has been recovering, which is reflected in its stock price. Nvidia stock has risen 47.4% this year and nearly 13% this month.
The Health Care sector led equity markets higher. The sector was led north by the Providers, really, UnitedHealth Group on the strength of that firm's quarterly "beat and raise." You were thinking that maybe the banks led? The strength across the group was really in consumer banking, and that sat very well with investors.
Investing.com - U.S. futures dipped on Wednesday as doubts lingered over a partial deal between the U.S. and China, while Bank of America's earnings came in a little ahead of expectations.
Nvidia stock soared on Tuesday after the graphics chipmaker received a pair of price-target hikes on Wall Street. Meanwhile, Inphi stock reached a buy point ahead of third-quarter earnings.
After a sleepy session on Monday, stocks got off to a strong start on Tuesday and rallied hard into the afternoon. Let's look at a few top stock trades for Wednesday. Top Stock Trades for Tomorrow No. 1: Roku (ROKU)Roku (NASDAQ:ROKU) shares are scorching higher, now more than 30% off its recent lows. With its move over $129.55 on Tuesday, Roku stock was able to reclaim its 50-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo what do bulls do now? As I've said before, when you find a high-growth stock that you like, begin accumulating it on its eventually massive decline.Should ROKU stock continue higher, see if it can reclaim the 78.6% retracement near $144. On a pullback, I want to see former uptrend support (blue line) hold as support, as well as the 20-day moving average. If they fail, see how it handles the 61.8% retracement.If it holds as support, Roku may continue higher. Below and we could see $110. Top Stock Trades for Tomorrow No. 2: Nvidia (NVDA)Nvidia (NASDAQ:NVDA) made an aggressive move, ripping over $188. It was exactly the move we've been waiting for, and NVDA isn't wasting any time continuing higher. Shares pushed right through $193 to new 2019 highs.Now what?On a move over $200, see if shares can run to the 50% retracement near $208. Above that and the gap between $220 and $225 could be on the table.Should shares rest or pullback, see that prior resistance between $188 and $193 holds as support. If not, NVDA will need more time to set up again. Top Stock Trades for Tomorrow No. 3: Alphabet (GOOG, GOOGL)Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is making an impressive move Tuesday, pushing through $1,240.The move launches GOOGL over the 78.6% retracement and puts it into the upper consolidation zone from September. The high from that range was $1,248. Over it and the post-earnings high of $1,268 is on the table. Above that and GOOGL's all-time high near $1,297 is possible.On a decline, see that uptrend support (blue line) buoys the stock price. Falling below that puts the 50-day moving average on the table. Top Stock Trades for Tomorrow No. 4: AT&T (T)AT&T (NYSE:T) is finally perking up again, after a big move higher early last month.T stock did a great job consolidating those gains, as it put in a series of higher lows (blue line). However, it had trouble pushing through resistance at $37.50, forming what's known as an ascending triangle, a bullish technical pattern.Now pushing through, see that $37.50 supports T stock, which might now make a move for its prior 52-week high at $38.22. Getting over that level opens the door to $40. Top Stock Trades for Tomorrow No. 5: JPMorgan (JPM)There's a reason JPMorgan (NYSE:JPM) is trading at new highs, after the best-in-breed bank beat on earnings and revenue expectations Tuesday morning.Sitting between recent support at $110 and its high at $119.44 before earnings, JPM was setting up for a move into either resistance or support. For the bank, it's the former.However, instead of getting tripped up by its former 52-week high, JPM leapt right over it. Now, for as good as JPM is, the bank stock has had trouble maintaining a sustained rally. From here, let's see that JPM stays above its former high. If it does, more highs could be on the way.Below $118, investors should be more cautious. If it can get over Tuesday's high, however, there's a Fibonacci extension up near $128.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU, GOOGL and T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post 5 Top Stock Trades for Wednesday: ROKU, NVDA, GOOGL appeared first on InvestorPlace.
The tech industry generates both profits and headlines, but as the last year has shown, it’s not always the right investment for the faint-hearted. The semiconductor sector has shown extreme volatility in the past 18 months, as it is highly sensitive to the US-China trade war. Semiconductor chips are the third largest export from the US, and much of that trade is with China; the sector has bounced up and down in line with news of new tariffs, possible deals, broken talks, and resumed negotiations.Long-term, however, chips have been an excellent investment. The industry as a whole is up over 430% in the last 10 years, so the key here is patience more than quick returns. Most of the major chip companies have already warned that 2H19 results will miss the estimates, and shares are down in response. But is this the time to buy the dip?There are some who say it is. Len Jelinek, senior director of semiconductor manufacturing for IHS Markit, says, “Every market downturn has ended with the arrival of a technical innovation that spurred a major increase in demand… Now another historic innovation is set to take its place among these advances: 5G. However, 5G's impact will spread far beyond the confines of the tech industry, impacting every aspect of society and driving new economic activity that will spur rising demand for microchips.” His firm predicts a semiconductor rebound next year, with 5.9% industry growth for 2020. In dollar terms, the forecast is an industry increase from $422 billion to $448 billion, as the global switch to 5G brings renewed growth as tech adapts and upgrades – and replaces outmoded chips.The profit potential inherent in 5G, and consequent increased demand, has caught the attention of RBC Capital’s 5-star analyst Mitch Steves. Steves is an expert on the tech sector, with a 72% success rate on his stock reviews, and an impressive 19.9% average return on his recommendations. He’s weighed in on three major players in the US semiconductor scene, and explained what makes each of them a compelling buy. We’ve dipped into TipRanks’ database to find out what he has to say.Advanced Micro Devices (AMD)The smallest of the three chip companies that Steves reviewed, AMD boasts a market cap of $33.6 billion and brought in $6.48 billion in revenues last year. In recent weeks, AMD received a much-needed confidence booster from Microsoft, which announced that the latest version of its 15-inch Surface Laptop 3 will be powered by AMD’s new Ryzen chip. Microsoft’s move offers precedent for other computer manufacturers looking to shift away from the Inte chips that have long dominated the PC market.AMD’s gaming prospects are strong, as well. The company has announced a new line of Radeon chips that will compete with Nvidia’s mainstream offerings, although not in the high-end GPU market. If successful, the new RX 5500 should keep AMD’s GPU market share stable, providing a ready profit stream.Perhaps the most important development for AMD’s future line-up, however, is in the server processor segment. The company has plans for two new chips to target the server and data center markets. Releases are planned for the next 12 months, at a pace that will put AMD ahead of its competitors, and on track to see company-wide sales increase in coming years. Expectations are for a 4% gain in 2019, and an impressive 25% gain in 2020.Steves is definitely bullish on AMD. He writes, “Recent concern that AMD Ryzen 3 is having reliability issues is unfounded... If the stock remains at current levels and does not move notably higher before Q3 earnings, we would buy the stock more than usual.”Elaborating on the chip maker’s prospects, he describes the upside scenario as: “AMD rapidly gains share in the server market and sees continual high double-digit growth in Computing and Graphics. This creates a revenue base north of $10B and operating margins expand into the 20%+ territory. With a successful next-generation product launch, this allows the company to gain 30%+ share of the server market and we think the stock would be worth more than $60.”For now, Steves gives AMD a $44 price target, indicating confidence in a 45% growth potential over the next 12 months. The analyst consensus on AMD is a Moderate Buy, based on 8 "buy," "12 hold," and 1 "sell" ratings. The average price target of $33.29 points to an 8% upside. (See AMD stock analysis on TipRanks)Micron Technology (MU)Micron is the second-largest US semiconductor company, and the fifth largest globally. The company recorded an impressive $31.8 billion in sales for 2018, netting $5.09 billion in profits. Despite 16% earnings beat in its fiscal Q4 report, MU shares slipped in the last week of September. Investors were worried about a weaker outlook for NAND, and lower supply growth in DRAM.On the positive side, however, Micron is shipping its first 1z-nanometer chips, marking a production shift from 1x and 1y output. Demand for the company’s products is expected to increase in the coming year, as consumers grow more comfortable with the shift to solid-state drives. Micron is also expected to gain market share on non-volatile memory express and subsequent improvements in SSD sales.As for new technologies, Micron is in the center of the 5G rollout and is heavily exposed to the automotive industry. We discussed 5G above; regarding automotive, as car makers increase the computer components in cars – especially in the advent of autonomous vehicles – chip demand will increase rapidly. Micron is well-positioned to make gains in this segment.For the near-term, MU is forecast to hold steady in market share and sales. By 2021, however, the company is expected to see gains approaching 18%. This longer-term forecast makes sense of Mitch Steves’ comments on the stock. He writes, “We remain positive on Micron but keep our price target unchanged as we think the pricing flow through will take a quarter or two longer than expected (fundamentally, we think investors over-shot the near-term but the long-term could exceed new models). Positively, we think we’re past the bottom on NAND and DRAM is beginning to bottom.” Steves’ unchanged price target is $55, implying a 21% upside potential.Overall, MU’s Moderate Buy consensus comes from 16 "buy," 8 "hold," and 2 "sell" ratings assigned in the last three months. The stock’s $55 price target matches Steves’ forecast. (See Micron stock analysis on TipRanks)Nvidia Corporation (NVDA)Our final stock from Steves’ list is also the tenth-largest chipmaker in the world, counting by total sales. Nvidia recorded $12.8 billion in sales for 2018, which brought the company $4.1 billion in net income. Strong sales and income also support a dividend, another plus for investors. The annualized yield is decidedly modest, at 0.33%, but it does pay out 64 cents per share per year, and the company has been growing that payout reliably over the past six years.Nvidia is well known among gamers for its high-quality GPU chips, and the company holds a dominant position in that segment. Gamemaker Activision Blizzard has at least four upcoming titles that will be using Nvidia’s RTX platform, and important boon for the chip maker. As new titles come out, gamers are likely to upgrade their GPU chips to support them.The automotive sector is another plus for Nvidia. As autonomous vehicle technology comes ever closer, the car makers have more and more need for fast AI chips. Nvidia reported a $209 million jump in this segment in its last quarter, as it looks at sustained growth in chip sales for the automotive AI market. All in all, gaming and automotive will give Nvidia sales boosts in the near term. Market watchers see a 19% gain in the offing for 2020, and a further 16% in 2021.RBC's Steves takes all of this into account when he writes, “Our checks suggest that gaming demand is tracking slightly ahead of plan and we think Data Center is coming back in Q4. We raise our estimates and increase our price target to $217 (from $190). We think NVIDIA will be the best-performing large cap in our universe over the next 6–9 months.”Steves sums up his upbeat stance on NVDA in a single sentence: “We think results will be better than expected but our adjustments are modest in nature, as we hope that expectations do not getTo find more good ideas for chip stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched feature that unites all of TipRanks’ equity insights.
Advanced Micro Devices (NASDAQ:AMD) is expected to report Q3 earnings on Oct. 23. And it looks as though at least some investors are betting on a better than expected showing from the company. After a slump that saw AMD stock lose 17% since early August, it popped 4.8% on Friday, and closed at $30.53 for another 2.6% gain on Monday. Given its underwhelming guidance for Q3 revenue, what's with the sudden optimism about Advanced Micro Devices stock?Source: Sundry Photography / Shutterstock.com Two factors are at play here: laptops and China. China Trade Deal Announcement Good News for AMD Stock PriceAs InvestorPlace's Luke Longo points out, the Chinese market is an important one for Advanced Micro Devices. China accounts for roughly 30% of AMD's revenue, and the company had been growing that business at a brisk pace -- at least until the trade war broke out between the U.S. and China. Tensions between the two countries which erupted into spats of tariffs have hit many stocks this year, and AMD has not been immune from that effect.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn Friday, President Trump announced the U.S. had reached a "very substantial phase one deal" with China. The agreement is aimed at easing trade tensions between the two countries. While finalizing the deal was expected to take an additional three-to-five weeks, in the meantime, the U.S. agreed to delay the additional 25% to 30% increase in tariffs scheduled to to go into effect this week. * 10 Hot Stocks Staging Huge Reversals News of the progress in negotiations between the two countries was a boost to the markets in general -- the Nasdaq Composite got a 1.3% bump on Friday -- but tech stocks with large exposure to the Chinese market performed particularly well. As such, AMD stock was up 4.8%, while graphics chip rival Nvidia (NASDAQ:NVDA) was up 1.6% on the day. AMD's Makes Progress in Laptop MarketAMD has been making impressive gains against Intel (NASDAQ:INTC) in the laptop market. In Q2, Advanced Micro Devices grew its market share from 8.8% in 2018 to 14.1%, outpacing its growth in the desktop PC market. Considering that laptops outsell desktops by a wide margin (162.3 million to 94.4 million in 2018), this is good news for AMD stock. Adding to its momentum, at Microsoft's (NASDAQ:MSFT) big Surface event, it was revealed that the new high performance 15-inch Surface Laptop 3 is powered by a customized AMD Ryzen chip instead of an Intel Core processor. Following that announcement, China's Xiaomi revealed its newest RedmiBook ultra-portable laptop will ditch Intel processors in favor of an AMD Ryzen mobile chip. When it comes to laptops, AMD is on a roll. Takeaway for AMD StockThe trade deal with China would be a significant boost for Advanced Micro Devices, but the papers have yet to actually be signed. By Monday, doubts were being raised about whether that will happen. The laptop wins have been big for AMD, but Intel's new 10th gen Core mobile processors are starting to show up in laptops and that could slow AMD's growth. In the meantime, AMD's Q3 earnings are fast approaching and the company's guidance of $1.8 billion in revenue was well below the $1.95 billion analysts were looking for.If everything goes right for AMD, the recovery for Advanced Micro Devices stock could gain steam. However, there are still too many variables that could send it in the opposite direction. Analysts are a little more bullish on AMD stock than they were several months ago, but the majority still rate it as a "Hold." And with an average 12-month target price of $32.95, there's not a ton of upside.If you are considering an AMD investment, either buy now in anticipation of the China deal being inked and better than expected Q3 earnings … or wait a few weeks with the assumption that the current AMD recovery will stumble. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Advanced Micro Devices Stock Pops for Second Straight Day appeared first on InvestorPlace.
Bank of America Merrill Lynch is getting more optimistic on Nvidia shares, forecasting big demand from the artificial-intelligence market in the coming years.