51.82 -0.04 (-0.08%)
Pre-Market: 9:06AM EDT
|Bid||51.68 x 3100|
|Ask||51.85 x 1400|
|Day's Range||51.38 - 52.83|
|52 Week Range||42.36 - 59.59|
|Beta (3Y Monthly)||0.71|
|PE Ratio (TTM)||12.05|
|Forward Dividend & Yield||1.26 (2.40%)|
|1y Target Est||N/A|
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...
(Bloomberg Opinion) -- Investors looking for signs that the worst is over for the chip sector would be pleased by what Taiwan Semiconductor Manufacturing Co. served up Thursday. All of its key earnings data point to a rebound in demand, and more importantly to pragmatic inventory management after a glut last year dragged down the entire industry. TSMC’s third-quarter net income beat estimates and its fourth-quarter revenue outlook came in at the top of analysts’ expectations. But the standout headline from the company’s investor conference was its decision to boost its capital expenditure this year by close to 40%. By the end of September it had already shelled out $9.4 billion of the “more than” $11 billion it had previously expected for the full year.That may seem like a brave wager, considering a deepening trade war on two fronts — between the U.S. and China, as well as Japan and South Korea — and President Donald Trump’s campaign against TSMC’s key client, Huawei Technologies Co. Just months ago, shoppers were eschewing futuristic gadgets and putting off smartphone upgrades. But TSMC has rarely made mistakes about how to spend its capex: This plan is not only bold but smart. The world’s biggest chipmaker plans to spend a record-breaking $14 billion to $15 billion this year on the leading-edge equipment it needs to manufacture chips for devices such as Apple Inc. iPhones and Huawei’s smartphones. The company turned more aggressive, CEO C.C. Wei explained, because it sees stronger-than-expected demand for next-generation manufacturing technologies. These chips will be used in smartphones, data centers, IoT devices (think Amazon Alexa) and even cars, he said. Wei said he’s confident that the higher spending will be justified by quicker revenue growth, especially with faster fifth-generation mobile networks and handsets ready to go mainstream in the coming year. Because of the technology involved, 5G networks require more base stations than an equivalent 4G rollout, which will further help semiconductor sales.What should really cheer investors, though, are the figures that often get overlooked, namely inventory. One of the biggest problems afflicting the sector a year ago was that companies — from Apple to PC-chipmaker Intel Corp. and iPhone assembler Foxconn Technology Group — all overshot the mark when it came to buying and building chips, only to be met with lackluster demand from consumers.TSMC’s inventory, measured in Taiwan dollars, fell by 8.2% in the September quarter, the biggest drop in more than two years. Days of inventory — another measure that tracks its stockpiles — dropped to 65 days, the lowest in 18 months. This shows that there’s a smaller risk that TSMC and its clients got ahead of themselves this time. Before celebrating a new dawn for the tech sector, there is a caveat. More sales for TSMC doesn’t necessarily mean more devices being sold to end consumers. That’s because smartphones are becoming even smarter, requiring more chips inside. High-end cameras, for example, require higher-resolution sensors, which in turn means more chips within a phone to manage the power, data and memory that such functionality requires. That said, investors looking for an excuse to jump back into tech shares got exactly what they needed from TSMC. If not signs of stronger demand, evidence of pragmatic inventory management makes it look like a safer sector to place a bet.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.
DOW UPDATE Shares of IBM and Intel are posting losses Thursday morning, though the Dow Jones Industrial Average is trading essentially flat. The Dow (DJIA) was most recently trading 3 points, or 0.0%, lower, as shares of IBM (IBM) and Intel (INTC) are contributing -24% of the index's intraday losses.
Intel (INTC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Semiconductor giant Intel is having a fairly quiet 2019. While the S&P 500 index is up more than 20% year-to-date -- and tech stocks are up even more than that -- Intel has put up a more subdued 13.38% total return since the calendar flipped to January. At a glance, it's clear that a big chunk of Intel's underperformance in 2019 came from a single event this spring: guidance disappointment from the firm's April earnings call.
(Bloomberg Opinion) -- Blacklisting by the U.S. government, accusations of espionage and the arrest of its chief financial officer haven’t been enough to scare investors away from Huawei Technologies Co. Shares of China’s biggest telecoms equipment and smartphone maker aren’t publicly listed, making its equity largely unavailable to outsiders. Its bonds, however, do trade and have continued their upward trajectory over the past year, impervious to Donald Trump’s best efforts to make Huawei the biggest scalp in his trade war with China. Four different series of U.S. dollar bonds, with maturities in 2022 through 2027, have climbed as much as 5.6% since a low in December. That’s a lot for fixed-income markets. Even a massive drop in May — when the Trump administration moved to ban U.S. companies from selling vital components to Huawei — was shrugged off by debt investors within a month. Each of those securities is now within striking distance of record highs.The concern at that time, and which persists even today, is that shutting off access to American products such as semiconductors and software would hobble the world’s second-biggest smartphone maker. U.S. companies including Qualcomm Inc., Broadcom Inc. and Intel Corp. supply parts used in electronics products that are difficult to substitute, especially given that China lags behind in chip technology. Even a ban on Alphabet Inc.’s Google from supplying bits of its Android operating system to Huawei was considered a major blow, since Android is used on more than two-thirds of smartphones. The prohibition follows the December arrest of CFO Meng Wanzhou, who was detained in Canada at the request of the U.S. over allegations that include lying about the company’s dealings with Iran.Debt investors brushed off these worries, perhaps believing that Huawei’s status as a national hero coupled with its deep technological abilities ensure that the company would be able to pay its debts. Huawei was sitting on $39 billion of cash and short-term investments at the end of last year, with just $10.2 billion in total borrowings, according to its latest annual report.That makes Huawei’s $4.5 billion in outstanding bonds a trifle. And in the context of a slowing Chinese economy and concerns about the pileup of debt throughout the nation’s financial system, Huawei looks like one of the safest bets around.Such bullishness was rewarded this week when Huawei announced nine-month sales figures. Rather than get strangled by all those forces working against it, the Shenzhen-based company posted a 25% increase in third-quarter revenue to 209.5 billion yuan ($30 billion), according to my calculations. That’s 5% less than the prior quarter, but not the apocalyptic scenario many had expected. Importantly, it managed to maintain the 8.7% net profit margin it posted in the first half, which is actually higher than the same figure for full-year 2018. All of this goes to show that no matter what the U.S. and the economy throw at it, Huawei will be fine. Or at least its debt holders will.To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Patrick McDowell 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.
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.
Intel stock (INTC) has returned 0.2% over the past month, outperforming the US semiconductor industry, and it could surge after earnings. Here's why.
Four Bay Area companies disclosed more than $250 million in funding at midweek and another one set price targets for a planned upcoming IPO.
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.
Intel (INTC) to gain robust edge computing capabilities with the acquisition of Smart Edge platform business from Pivot Technology Solutions.
The Zacks Analyst Blog Highlights: Intel, Oracle, Novo Nordisk, ConocoPhillips and Advanced Micro Devices
(Bloomberg) -- Broadcom Inc. was ordered to drop allegedly unfair clauses that may compel set-top box makers to use its chips, as European Union antitrust chief Margrethe Vestager deployed a rarely used weapon meant to prevent victims from suffering while probes drag on for years.Broadcom must end "anti-competitive provisions" in contracts within 30 days while the EU continues an investigation into allegations that the U.S. supplier forces six of its main customers to buy its chipsets. While the order announced on Wednesday is set to remain in force for three years or until the EU finishes its probe, Broadcom says it will ask an EU court to overturn it."The evidence that we have gathered from Broadcom’s behavior is likely to have severe negative effects on competitors before we could reach a final decision,” Vestager told reporters in Brussels. She said the so-called interim measures tool is "now on the table" and "if we find cases where interim measures would actually be the thing to do to prevent irreparable harm to competition then obviously we stand willing to use it."The EU hasn’t used interim measures in nearly two decades. The Broadcom move comes after criticism that EU probes into Google and Intel Corp. -- where the tool wasn’t used -- took so long that victims of unfair practices were thwarted by the time fines were levied.Court Fight"We intend to appeal the commission’s decision to the European courts and in the meantime comply with the commission’s order,” Broadcom said, adding that it doesn’t believe the contested provisions “have a meaningful effect on whether the customers choose to purchase Broadcom products."Officials said swift action was necessary because Broadcom’s conduct was likely to affect several upcoming tenders by telecoms providers and the introduction of the WI-Fi 6 standard for models and TV set-top boxes.Broadcom, based in San Jose, California, has also been targeted by U.S. antitrust scrutiny of WI-Fi and switch-chip markets, a probe covering the vast majority of its chip business. Broadcom has described that investigation as immaterial.The EU’s order would be "a landmark moment" for antitrust enforcement, especially if it’s backed by the bloc’s courts, France’s antitrust chief Isabelle de Silva said at a Paris event last week. The EU’s last attempt to use interim measures was halted by a court order in 2001. The regulator had required IMS Health to license data-collecting tools in Germany. The company later partly won a legal challenge that allowed it restrict some licenses.Arris International Plc was among the Broadcom customers to receive a questionnaire from the EU on chips in hardware used by the cable and satellite industry to provide television and internet to consumers, Bloomberg reported in October.(Updates with Broadcom statement in fifth paragraph.)To contact the reporter on this story: Aoife White in Brussels at email@example.comTo contact the editors responsible for this story: Anthony Aarons at firstname.lastname@example.org, Peter Chapman, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Huawei Technologies Co.’s revenue jumped 24% in 2019’s first nine months, defying Trump administration sanctions to sustain growth in its pivotal smartphone business.China’s largest technology company reported revenue of 610.8 billion yuan ($86.1 billion) in the January to September period. Global smartphone shipments jumped 26% in the first three quarters to over 185 million units, helping safeguard its position as the world’s second largest name in mobile devices.China’s largest technology company managed to grow revenue despite curbs on the export of crucial American software and components, which executives had warned for months would severely crimp both its networking and smartphone businesses. Huawei has said it expects U.S. export restrictions to reduce annual revenue at its consumer devices business by about $10 billion, in part because Google can no longer supply Android updates and apps from Gmail to Maps for the Chinese company’s newest handsets.The company’s reported results -- which were unaudited -- suggest that those restrictions have yet to severely impair the business. Huawei, accused by Donald Trump’s administration of aiding Beijing in spying while spearheading China’s tech-superpower ambitions, is trying to claw back business and shore up trust in its products.Billionaire founder Ren Zhengfei has warned his tech empire faces a “live or die moment,” and mobilized thousands of staff to work around the clock devising alternatives to American technology. Some American giants, including Intel Corp. and Micron Technologies Inc., have said they’re found ways to resume supplying Huawei, a major boost for the Chinese company.Huawei Sales Growth Slumps as U.S. Sanctions Start to BiteIts phone shipments in 2019 suggest its lead in the Chinese market, the world’s largest, is offsetting weak sales abroad. Huawei shipped more than 206 million smartphones in 2018, according to research firm IDC. The company is betting on its home turf and upcoming holiday season to drive its smartphone sales for the rest of the year. It aims to take half of the smartphone market in China, Bloomberg News reported earlier.There are signs also that U.S. efforts to block Huawei from the development of 5G technology are flagging: Huawei said Wednesday it has signed more than 60 5G commercial contracts to date worldwide. A senior executive in India for the company said the government there had given “no negative feedback” on Huawei, while in Germany, one of the biggest European markets, the Merkel administration said Huawei’s equipment will not be excluded in future 5G procurement. Huawei’s biggest bet, however, remains in China, where state-owned carriers are ready to build their own 5G networks.It remains unclear whether prolonged sanctions will eventually rob Huawei of growth, something Ren himself has warned may happen. Huawei remains at the heart of U.S. tensions with China, a symbol of the Asian country’s rising technological might.Critics charge that intellectual property theft from the likes of Cisco Systems Inc. and Motorola Solutions Inc. helped Huawei vault into the upper echelons of telecommunications providers, though Ren and his executives credit years of investment and research. The wireless giant is now accelerating spending on artificial intelligence chips and mobile software. It’s mobilizing its employees to source or develop alternatives to American circuitry and software to keep its edge in smartphones and next-generation 5G wireless technology.To contact Bloomberg News staff for this story: Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Colum Murphy, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The company came under scrutiny as part of a program to ensure federal contractors are not discriminating against protected employees.
The Labor Department says it has reached a $5 million settlement with chip maker Intel Corp. over allegations of pay discrimination against its female, African American and Hispanic employees.
Customer Relationship Management (CRM) is universally adopted, we’re seeing increased use of Net Promoter Scores in B2B sales and the opportunities for analytics are seemingly endless. Social networking has also had an impact on the industry. In addition to Social Selling, via LinkedIn and Twitter for example, social networks give everyone a voice and make information more accessible.
Chipmaker Intel Corp. is buying a software business from Canadian IT service provider Pivot Technology Solutions in a bid to boost its own 5G offerings. Intel is paying $27 million for Pivot’s Smart Edge software. Under the deal, 25 employees, including Smart Edge’s CEO Bob Pike, will join Intel.