48.56 +0.37 (0.77%)
Pre-Market: 4:34AM EDT
|Bid||48.25 x 1000|
|Ask||48.53 x 3100|
|Day's Range||47.56 - 48.48|
|52 Week Range||42.36 - 59.59|
|Beta (3Y Monthly)||0.60|
|PE Ratio (TTM)||10.88|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||1.26 (2.69%)|
|1y Target Est||52.31|
FedEx Corporation is testing the weight of U.S. export laws that prohibit delivery of certain U.S. items to entities identified as a risk to national security.
Stock futures: After Wednesday's stock market rally fizzled, Wedbush initiated coverage on AMD, Intel and Nvidia stock. The FAA has found a Boeing 737 Max "risk."
Intel (INTC) is the leader in the data center processor market with more than a 95% share. Intel’s x86 server CPUs (central processing unit) power 95.6% of the top 500 supercomputers in the world, according to a TOP500 report.
The Nasdaq held a small lead going into the last hour of regular trade, as chip stocks rallied but President Trump fired a shot at Facebook and Alphabet.
The US ban on Chinese supercomputing targets companies such as Sugon, which has just over $1 billion in annual revenue. Although a ban on these supercomputing companies may not have as high of a revenue impact as the ban on Huawei, it will slow China’s technological development.
(Bloomberg) -- Apple Inc. hired one of ARM Holdings Inc.’s top chip engineers as the iPhone maker looks to expand its own chip development to more powerful devices, including the Mac, and new categories like a headset.The company hired Mike Filippo in May for a chip architect position, according to his LinkedIn profile. At ARM, Filippo was a lead engineer behind chip designs that power the vast majority of the world’s smartphones and tablets and was leading a new push into parts for computers. ARM, owned by SoftBank Group Corp., designs microprocessors and licenses technology that is fundamental to the chip development efforts of Apple, Samsung Electronics Co., Qualcomm Inc. and Huawei Technologies Co.Prior to his work at ARM, Filippo was also a key designer at chipmakers Advanced Micro Devices and Intel Corp. ARM confirmed Filippo’s departure. Apple didn’t respond to a request for comment.“Mike was a long-time valuable member of the ARM community,” a spokesman for the U.K.-based company said. “We appreciate all of his efforts and wish him well in his next endeavor.”For Apple, the hire could help fill the void left by the departure of Gerard Williams III earlier this year. Williams was Apple’s head architect of chips used in the iPhone and iPad. Apple’s A series chips power its mobile devices using ARM technology. Its Mac computers have used processors from Intel for nearly two decades.The company initiated a plan several years ago to replace Intel chips in its Mac computers with processors based on the ARM architecture as early as 2020. Filippo’s experience in more advanced chips like those in servers would assist in that effort. The company is also planning to expand its in-house chip making work to new device categories like a headset that meshes augmented and virtual reality, Bloomberg News has reported.To contact the reporters on this story: Mark Gurman in San Francisco at email@example.com;Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Stocks struggled for much of Wednesday, fighting off the effects of higher interest rates and rising oil prices.
(Bloomberg) -- American technology companies have resumed selling certain products to Huawei Technologies Co. after concluding there are legal ways to work with the Chinese telecom giant in spite of its inclusion on a Trump Administration blacklist.Micron Technology Inc., the largest U.S. maker of computer memory chips, said on Tuesday that it had started shipping some components to Huawei after its lawyers studied export restrictions. Intel Corp., the largest microprocessor maker, has also begun selling to Huawei again, according to a person familiar with the matter. It’s not clear how many other suppliers have reached the same conclusion.The U.S. Commerce Department added Huawei last month to what’s known as an entity list, a move designed to bar the Chinese company from buying American components and software. The Trump Administration said Huawei helps Beijing in espionage and represents a security threat -- charges the company denies. Officials at Commerce and the White House are frustrated that companies have resumed Huawei shipments, according to another person familiar with the matter. The White House didn’t immediately respond to a request for comment.The chipmakers are taking advantage of certain exceptions to the export restrictions. Even when companies have headquarters in the U.S., they may be able, through ownership of overseas subsidiaries and operations, to classify their technology as foreign, according to Cross Research analyst Steven Fox. If less than 25% of the technology in a chip originates in the U.S., for example, then it may not be covered by the ban, under current rules.“It took them weeks to figure this out,” Fox said. “What they did was look at the laws and the rules and applied them to their business.”Micron, which also reported earnings on Tuesday that topped analysts’ estimates, soared as much as 14% in New York trading. Intel, Nvidia Corp. and Qualcomm Inc. also rallied, while Asian chipmakers from Tokyo Electron Ltd. to SK Hynix Inc. gained too.Micron has operations all over the world, some added through acquisitions, and it owns plants in Singapore, Japan and Taiwan. Intel has factories in China and Ireland and a major design center and production facility in Israel. The company declined to comment.Companies can legally continue some shipments to Huawei under what’s known as the de minimis rule, says Kevin Wolf, former head of the Commerce Department’s export control section.“Commodities made overseas from U.S.-origin technology are only subject to the entity list prohibitions if the technology and commodity are sensitive items controlled for ‘national security’ reasons,” Wolf said. “But a commodity made overseas from less sensitive U.S.-origin technology is not subject to the entity list prohibitions.”The de minimis threshold is 25%, according to the Commerce Department.National security hawks in the Trump Administration thought that inclusion on the entity list would ratchet up pressure on Huawei, but they didn’t understand or misinterpreted the existing rules, people familiar with internal deliberations said. Those advisers didn’t fully grasp the limits of export controls in constricting supply chains that reach deeply into China.Micron Chief Executive Officer Sanjay Mehrotra, in a conference call discussing his company’s earnings, declined to explain his analysis, despite repeated questions. In a brief interview after the call, he also wouldn’t elaborate and said he hopes the U.S. and China quickly resolve their trade dispute.The Semiconductor Industry Association trade group put out a statement aimed at supporting its members’ right to keep working with an important customer: “SIA companies are committed to rigorous compliance with U.S. export control regulations. As we have discussed with the U.S. government, it is now clear some items may be supplied to Huawei consistent with the Entity List and applicable regulations.”The trade war and Huawei sanctions put U.S. chipmakers in a tough position. They need to comply with new rules in their home country, while at the same time navigating the intricacies of business in China, an increasingly crucial market. More than 60% of the $470 billion of chips sold last year went through China.If Huawei’s American suppliers can resume some sales, that may avoid the detrimental financial impact many have been anticipating.Even though these companies have found ways to legally keep exporting some of their products to Huawei, they are prohibited from providing post-sale support like software updates, repairs or installation help. That means that while an item in a box can be shipped from Taiwan to China, for example, the company still can’t provide information on software repairs or assistance from Silicon Valley. Wolf said that, in his experience, that can be a significant handicap.Finding legal ways to sidestep restrictions is taking on added significance for U.S. companies as the Trump Administration expands curbs on technology exports to China. Last week, the Commerce Department blacklisted five Chinese entities over accusations they were developing supercomputers for military applications. Bloomberg has also reported that some Chinese video surveillance firms may be barred from U.S. suppliers.The Commerce Department could easily change the definition of what foreign-made items are subject to the regulations. That change wouldn’t require Congressional approval, Wolf said. Still, it’s not clear if the Trump administration is looking into making such changes.“Micron will continue to comply with all government and legal requirements just as we do in all our operations globally,” said Micron CEO Mehrotra. “Of course, we cannot predict whether additional government actions may further impact our ability to ship to Huawei.”(Updates with Micron, other chipmaker shares from the sixth paragraph.)To contact the reporters on this story: Ian King in San Francisco at firstname.lastname@example.org;Jenny Leonard in Washington at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Tom GilesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The G20 Summit is scheduled for June 28–29 and will be held in Osaka, Japan. While the summit always attracts attention, it will be closely watched this year in particular due to the meeting between US President Donald Trump and Chinese President Xi Jinping.
Investing.com – Micron’s better-than-expected results and news that the chipmaker had resumed shipments to Chinese telecommunications-equipment maker Huawei stoked expectations that memory demand is returning, sending chip stocks soaring higher Wednesday.
Micron beat earnings views and sees higher demand, while China trade news was hopeful. That offers hope to the stock market rally after Tuesday's big sell-off in growth stocks.
Semiconductor maker stocks were broadly higher in premarket trading Wednesday, fueled by Micron Technology Inc.'s better-than-expected earnings and upbeat outlook, and after memory chip maker said it resumed some shipments to China's Huawei Technologies Co. The VanEck Vectors Semiconductor ETF rallied 2.4%, as all 22 of the 25 components that have traded ahead of the open gained ground. Micron's stock shot up 8.9% to pace the gainers. Among other more-active stocks, Advanced Micro Devices Inc. rallied 3.4%, Nvidia Corp. rose 2.3%, Intel Corp. advanced 1.6%, STMicroelectronics N.V. hiked up 4.8% and Qualcomm Inc. tacked on 1.3%. Micron's stock had lost 19% over the past three months through Tuesday, while the chip ETF has lost 0.8% and the S&P 500 has gained 3.5%.
The S&P; 500 inched up 8 points, or 0.3%, by 9:48 AM ET (13:48 GMT). The Dow rose 59 points, or 0.2%, and the tech-heavy Nasdaq composite was up 74 points, or 0.9%.
- United States chip makers including Intel Corp and Micron Technology Inc are still selling millions of dollars of products to Huawei Technologies Co Ltd despite a Trump administration ban on the sale of American technology to the Chinese telecommunications giant, according to four people with knowledge of the sales. - The drugmaker AbbVie Inc said on Tuesday that it planned to buy Allergan Plc, the maker of Botox, for about $63 billion. - Online home furnishings giant, Wayfair's employees are planning to walk out of the company's Boston headquarters on Wednesday to protest its sale of $200,000 worth of bedroom furniture to a government contractor that operates a network of shelters for migrant children near the southwestern border.
(Bloomberg Opinion) -- American technology products aren’t necessarily American.At least, that’s the conclusion some U.S. executives have come to. That loophole could explain why Micron Technology Inc. and Intel Corp. have resumed shipping to Huawei Technologies Co. after the Trump administration blocked U.S. companies from supplying the Chinese firm and some peers. During an earnings conference call Tuesday, Micron CEO Sanjay Mehrotra said:“To ensure compliance, Micron immediately suspended shipments to Huawei and began a review of Micron products sold to Huawei to determine whether they are subject to the imposed restrictions. Through this review, we determined that we could lawfully resume shipping a subset of current products because they are not subject to export administration regulations and entity list restrictions.”He didn’t elaborate on that “subset,” and noted that there’s ongoing uncertainty. In at least some cases, the U.S. Department of Commerce, which administers the ban, has been consulted about what can and can’t be sold, the New York Times reported. Meanwhile, officials at the Commerce Department and the White House are frustrated that companies have resumed Huawei shipments, Bloomberg reported.If one thing is clear about President Donald Trump’s May 15 Executive Order, it’s that the precise scope of the ban caused confusion throughout the global technology supply chain. Simple labels like “Made in the U.S.A.” aren’t so straightforward when you consider that a product’s conception, assembly and packaging can crisscross multiple borders. This reality complicates the president’s assault on foreign companies, and should serve as a warning that broad-stroke measures against Chinese firms can backfire on the U.S. At the same time, the very interconnected nature of manufacturing could wind up helping companies skirt restrictions. Consider Micron. According to its annual report, “a significant portion of our facilities are located outside the United States, including Taiwan, Singapore, Japan, and China.”That’s an understatement. Only 22% of its property, plants and equipment are in U.S. A third is in Taiwan, followed by 30% in Singapore. Less than 2% is in China. In other words, most of Micron’s product isn’t made in America. That might exempt a good portion of its product from Trump’s ban.The Commerce Department last week added another five Chinese companies to its Entity List. As this lineup grows, so too does the tally of missed revenue opportunities for U.S. companies.That makes the profits from finding clauses and exceptions to the ban even more enticing – because while executives hate uncertainty, they love loopholes. I can just imagine teams of lawyers throughout the U.S. poring over regulations and product lists searching for exploits in the same way hackers hunt for security vulnerabilities.Over time, companies weighing the risks and returns may opt to go ahead and ship to China, reasoning that any possible punishment from the U.S. government will pale in comparison to the revenue potential. Fines could end up being just a tax on business, in the same way that banking and environmental regulations are often flouted because complying is more costly than the penalties.In such cases, expect technology companies to realize that it’s a better deal to sell to China than not. And we all know that Trump loves a good deal.To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Rachel Rosenthal at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Micron Chief Executive Sanjay Mehrotra said the Idaho-based maker of chips for smartphones and other devices resumed shipping some chips in the past two weeks after it reviewed the U.S. ban on selling products to the China-based telecommunications company. "We determined that we could lawfully resume shipping a subset of current products because they are not subject to export administration regulations and entity list restrictions," Mehrotra said on a conference call with investors. Micron and other chipmakers suspended shipments to Huawei after the U.S. government on May 15 added the world's biggest telecoms equipment maker and 68 affiliates to an "Entity List", banning it from acquiring components and technology from U.S. firms without government approval.
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.
QuickLogic (QUIK) is gaining from increasing adoption of it's sensor processing solutions and embedded FPGA (eFPGA) IP Licensing solutions.
Trade-war is taking a toll on technology stocks' financial performance as the companies lose out on significant business opportunities.
The inclusion of Mengniu as a sponsor for Olympic Games corroborates the 'Look East' policy of IOC and represents a marked shift in its sponsorship program.
(Bloomberg) -- Capgemini SE said it will acquire Altran Technologies SA in a 3.6 billion-euro ($4.1 billion) deal in order to win more tech clients and keep up with rivals.Paris-based Capgemini is looking to maintain its position as a major IT consultancy in a consolidating industry, as competitors such as Accenture have been building out their sales from digital projects.Capgemini’s shares rose as much as 8% in early morning trading in Paris Tuesday, the most since October 2011. Altran rose 21% to 13.9 euros, trading just below the 14 euros-a-share offer price.Analysts broadly backed the deal. "We think this deal should bring strong value creation and provides scale that can help Capgemini close the valuation gap to larger rivals such as Accenture," said Neil Campling, analyst at Mirabaud.The 14 euros-a-share cash portion of the deal amounts to 3.6 billion euros excluding net debt of 1.4 billion euros, the companies said in a statement Monday. The offer is a 22% premium to Altran’s closing price on Friday.The proposal is a “positive step, as it looks to significantly expand into R&D and engineering, two areas becoming main growth drivers for IT-outsourcing companies,” said Anurag Rana, a Bloomberg Intelligence analyst. “The deal would enable Capgemini to compete more aggressively with Accenture, which generates more than 60% of sales from digital projects.”When combined Capgemini and Altran -- also based in Paris -- will be able to help clients in areas such as cloud computing, the internet of things, 5G, and artificial intelligence software, Capgemini Chief Executive Officer Paul Hermelin said in a statement.In an interview with Bloomberg TV, Hermelin added that Altran adds "beautiful accounts" such as Intel Corp, Cisco Systems Inc. and Microsoft Corp., but added that the group still needed to develop its business in Asia. The combination of the two companies will result in a group with 17 billion euros in annual revenue and more than 250,000 employees.Hermelin expressed confidence on a conference call Monday that there are no antitrust issues associated with the takeover since “the market is very fragmented.”Still, the companies’ businesses do overlap, as they provide some of the same services to similar industries. Capgemini expects the deal to boost earnings per share by 25% by 2023, from 15% before the transition is completed.(Updated with CEO interview.)To contact the reporters on this story: Nico Grant in San Francisco at email@example.com;Francois de Beaupuy in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Molly Schuetz, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Some of the country's biggest tech names are finding ways to still do business with Chinese tech giant Huawei, even as the White House calls the company a security risk. Yahoo Finance's tech editor Dan Howley joins The First Trade to break down how Micron, Qualcomm, Intel, and other companies are getting around the ban.