57.18 +1.00 (1.78%)
Pre-Market: 4:41AM EST
|Bid||56.50 x 2200|
|Ask||57.06 x 1000|
|Day's Range||55.63 - 56.56|
|52 Week Range||37.18 - 60.64|
|Beta (5Y Monthly)||0.62|
|PE Ratio (TTM)||25.19|
|Forward Dividend & Yield||2.84 (4.88%)|
|Ex-Dividend Date||Mar 18, 2020|
|1y Target Est||67.03|
The U.S. is considering restrictions that could limit the use of American chip-making equipment to produce semiconductors for China’s Huawei Technologies, according to a report in The Wall Street Journal.
World stocks markets were knocked off record highs on Tuesday as two of the world’s mega companies and Europe's largest economy, Germany, reported damage from the coronavirus outbreak. Apple’s stock fell almost 6% in Frankfurt at one stage and Wall Street looked set for a rocky ride later after the iPhone maker warned it was unlikely to meet the March quarter sales guidance that it had set just three weeks ago. China sensitive stocks led the falls but the mood had been darkened further by a far-worse-than-feared German investor sentiment survey pointing to a deepening manufacturing recession there.
High-level meetings, set to be held this week or the following one, will discuss measures aimed at curbing the export of American chips and chip technology to Huawei and other Chinese companies. Global manufacturers of semiconductors will have to obtain required licenses if they want to use American technology to make chips for Huawei.
Futures fell as Apple warned on sales, citing the coronavirus impact on iPhone output and demand. Walmart earnings missed. InMode earnings are due.
SAN FRANCISCO/SEOUL (Reuters) - Samsung Electronics Co Ltd's semiconductor manufacturing division has won a contract to make new Qualcomm Inc 5G chips using its most advanced chip-making technology, two sources familiar with the matter said, boosting the Korean firm's efforts to gain market share against rival Taiwan Semiconductor Manufacturing Co. Samsung will fabricate at least some of Qualcomm's X60 modem chips, which will connect devices such as smart phones to 5G wireless data networks. The X60 will be made on Samsung's 5-nanometer process, the sources said, which makes the chips smaller and more power-efficient than previous generations.
Qualcomm Inc on Tuesday introduced new chips designed to connect mobile phones to 5G networks that operate differently around the world. Qualcomm is the world's biggest supplier of mobile phone chips. The San Diego, California-based company said its new X60 modem chip, along with a new antenna chip, will be the first to aggregate signals sent over the disparate frequencies used in the two variants of 5G networks, a feature the company said will help boost download speeds.
(Bloomberg) -- Qualcomm Inc. announced its third new chip for 5G smartphones that the company said will help cellular service providers and deliver another improvement in mobile phone performance.The X60 is the chipmaker’s latest modem for the fifth-generation networks that debuted only last year and will become the mainstream service this year. The company said phones based on the new chip will go on sale in 2021. A modem is a type of chip that turns radio signals into voice and data.The part will allow a step forward in what’s called carrier aggregation, according to San Diego-based Qualcomm. That means phones will use a combination of the new higher frequencies that make up 5G and the airwaves relied on by older networks. Data will be sent to and from phones much quicker than using one narrower piece of spectrum.Phone companies, which typically own the rights to use scattered batches of airwaves, will be able to get more efficiency out of their expensive assets. That should help persuade the carriers, who are key in the rollout of 5G, that it’s in their interests to speed up introduction of the new service, according to Qualcomm.Qualcomm’s chip revenue has reflected the surge and the maturing of the smartphone industry. The company’s semiconductor sales peaked in fiscal year 2014 at more than $18.6 billion. In the last few years as consumers have held onto their phones longer, revenue has declined to $14.6 billion.The chip will also be the first to be made with 5-nanometer technology, the most advanced production technique in the semiconductor industry. Qualcomm outsources its manufacturing to companies such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co.Qualcomm was among the biggest beneficiaries of the shifts to previous generations of mobile phone technology, when its chips became the market leader. In the decade since 4G began, smartphone sales have slowed given incremental improvements in form and function. That has hurt Qualcomm’s growth as the company is facing more competition, including from customers such as Samsung and Huawei Technologies Co.To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Alistair Barr at email@example.com, Andrew Pollack, Dan ReichlFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
SHANGHAI/SINGAPORE, Feb 18 (Reuters) - Hong Kong stocks fell on Tuesday as Apple Inc's revenue warning due to slow production and weaker demand in virus-hit China took a toll on technology stocks. ** At the close of trade, the Hang Seng index was down 429.40 points, or 1.5%, at 27,530.20. The Hang Seng China Enterprises index fell 1.4% to 10,805.15.
Japanese shares fell on Tuesday, with the broad Topix index finishing at its weakest in nearly four months, as investors sold tech firms after Apple Inc warned it will likely miss quarterly revenue targets due to the coronavirus outbreak. The benchmark Nikkei average fell 1.4% to a two-week low of 23,193.80, while the Topix index dropped 1.3% to 1,665.71, its lowest close since late October. All but one of the 33 sector sub-indexes on the Tokyo Stock Exchange were trading lower, with electric machinery, metal products and machinery, becoming the worst three performers.
Asian shares fell and Wall Street was poised to retreat from record highs on Tuesday after Apple Inc said it would miss its March quarter revenue guidance as the coronavirus slowed production and weakened demand in China. The warning from the most valuable U.S. company sobered investor optimism that stimulus from China and other countries would protect the global economy from the effects of the epidemic. European stocks were expected to follow suit, with major European stock futures trading 0.5-0.6% lower.
(Bloomberg Opinion) -- Apple Inc. has thrown out its March-quarter revenue guidance three weeks after providing it.Despite factoring in possible downside from the China coronavirus outbreak in its original forecast, the iPhone maker realized that things have deteriorated much more than it had anticipated. It gave no new figure and merely said the old one no longer applies, an admission that the company really can’t quantify the impact.While we should expect similar downbeat tones through the rest of the sector, this really means we should keep tabs on the one company that sits at the heart of the global technology supply chain: Taiwan Semiconductor Manufacturing Co.Apple is TSMC’s largest customer. When the chipmaker gave its own first-quarter and full-year forecasts Jan. 16, the world had barely heard of the disease now riveting its attention.Since then, Apple has shut stores in China and downstream assemblers like Hon Hai Precision Industry Co. have struggled to ramp up production after the Lunar New Year break amid continuing quarantines and a shortage of workers willing to return to the factory floor.Nvidia Corp., which designs graphics chips, is another major client of TSMC. On Feb. 13, it said the virus had cut its forecast by $100 million. That’s only around 3% of expected revenue for the quarter, but it all eventually adds up. Alibaba Group Holding Ltd., not a direct customer, forecast a decline in revenue from its core businesses as consumers on its e-commerce platform shy away from spending. At least some of those lost sales will be electronics products, which use chips made by TSMC.Chinese companies, including Huawei Technologies Co., accounted for 20% of TSMC’s revenue last year. With numerous enterprises in China on lockdown, adding to the squeeze on both demand and production, it’s unlikely such clients will be able to escape the impact.And last week, wireless industry association GSMA scrapped its annual Mobile World Congress scheduled for Feb. 24 in Barcelona because most of its major participants had already pulled out. This isn’t a consumer event, but the cancellation shows the breadth and reach of the outbreak’s impact on business. Whichever way you look at it, the global tech slowdown leads back to TSMC. Revising guidance mid-quarter isn’t without precedent, and TSMC usually does with a statement filed mid-afternoon Taipei time. It did so a year ago this week, cutting its sales and profit outlook after facing troubles with chemicals used in the manufacturing process. The result was a 10% reduction in operating profit. Just a few months before that, a production hiccup caused by a computer virus in its equipment hurt gross profit by around 5%. An earthquake four years ago sliced operating income by about 7%. The biggest mid-quarter guidance cut I could find is the 25% hit to operating profit that it took in December 2008 as the financial crisis brought the world economy to a halt.To be sure, it’s not certain that a cut will be necessary this time. Clients may decide that they want to keep building up inventory of the chips that come out of TSMC’s factories. But at some point, end-demand may dictate a more cautious approach to procurement. This epidemic is proving hard to quantify, so TSMC’s biggest challenge may not be whether to revise guidance, but what new number to give. To contact the author of this story: Tim Culpan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Japanese stocks fell to two-week low on Tuesday, dragged down by tech companies after Apple Inc warned it was unlikely to meet its sales target for the March quarter as the coronavirus outbreak hurt production and demand in China. All but one of the 33 sector sub-indexes on the Tokyo Stock Exchange were trading lower, with precision machinery , metal products and electric machinery being the worst three performers. Apple told investors late on Monday that its manufacturing facilities in China that produce iPhone and other electronics have begun to re-open, but are ramping up slower than expected.
Asian shares fell and Wall Street retreated from record highs on Tuesday after Apple Inc said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China. China’s central bank cut the interest rate on its medium-term lending on Monday, which is expected to pave the way for a reduction in the benchmark loan prime rate on Thursday.
U.S. stock futures slipped from record levels on Tuesday after Apple Inc said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China. The warning from the most valuable company in the United States sobered investor optimism that economic stimulus by Beijing and other countries would protect the global economy from the effects of the epidemic. Apple told investors its manufacturing facilities in China have begun to re-open but are ramping up more slowly than expected.
The Trump administration is considering changing U.S. regulations to allow it to block shipments of chips to Huawei Technologies from companies such as Taiwan's TSMC, the world's largest contract chipmaker, two sources familiar with the matter said. New restrictions on commerce with China's Huawei are among several options to be considered at high-level U.S. meetings this week and next. The measure would be a blow to the world's no. 2 smartphone maker as well as to TSMC, a major producer of chips for Huawei's HiSilicon unit and mobile phone rivals Apple Inc and Qualcomm Inc.
Futures: Walmart, Medtronic and InMode earnings are due Tuesday. IPO stocks InMode, Progyny, Ping are near buy points. So is Taiwan Semiconductor. Buffett-boosted RH is likely to break out.
After weathering the chip slump, STMicroelectronics (NYSE:STM) is set up to be a leader in the Internet of Things.Source: Michael Vi / Shutterstock.com The Internet of Things combines sensors, analysis software and communications. It brings previously inanimate devices under computer control.Self-driving cars are the best-known IoT niche. STM lists Tesla (NASDAQ:TSLA) and Intel's (NASDAQ:INTC) Mobileye unit among its top 10 customers. But traffic lights, sewers, phone networks, and even biological processes, can be constantly monitored and controlled using STM microcontrollers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Exciting Stocks to Buy for Aggressive Investors A poor first half of 2019 at STM was followed by a strong second half. This sent the shares up 85% over the last six months. At its Feb. 14 opening price of $31.29 per share, STM has a market cap of $28.5 billion against revenues of about $9.5 billion. Its price to earnings ratio of 28 is close to that of Taiwan Semiconductor (NYSE:TSM). STM Business and EarningsA valuation like that of TSM makes sense because STM both designs and makes its own chips. Many are made using obscure processes like Fully Depleted Silicon on Insulator (FD-SOI), Radio Frequency Silicon on Insulator (RF-SOI) and Vertical Intelligent Power (VIPower).For its fourth quarter, announced in January, STM beat analyst estimates with earnings of $392 million, 43 cents per share fully diluted, and revenue of $2.75 billion. Management is projecting 2020 revenues of $12 billion and what it calls "solid, sustainable growth."Most people have never heard of STM because its brand name is hidden inside other companies' products. Its chips go into sub-assemblies, programmed to collect data and communicate it over fixed or variable distances. Still, the company claims about 18,500 patents and filed for 590 more last year.One example of what STM does is its new LoRA SOC. This enables long-range transmission of data for creating smart devices that are managed remotely. The company manufactures in both France and Italy, as well as Singapore, with assembly and testing facilities in Asia and Morocco. Waiting for the PunchI began writing about IoT technology in the early 2000s, calling it the "World of Always On." I now prefer to call it "the Machine Internet," and it's a focus for growth in the new decade. Growth has been slowed by a lack of standards, by questions of security, and by privacy worries. STM works, with groups like the Zigbee Alliance on standards aimed at making microcontroller communication invisible.Some of the technical hurdles are now being crossed and niches like self-driving cars are heating up. Analysts expect STM to earn $1.45 per share this year, compared with $1.14 per share last year. Zacks recently profiled it as "an incredible growth stock," because earnings estimates have been steadily rising. The Bottom LineThe biggest risks for STM stock right now would be a manufacturing slowdown caused by the coronavirus and growing international tension slowing trade.If that happens, bigger profits will be delayed, but only for a time. The productivity benefits from radio-controlled sensors are impossible to deny. STM also has over $2.7 billion in cash on the balance sheet to weather any storm, against long term debt of $1.9 billion. That's a strong capital position for a manufacturer.A big year for STM will also mean a big year for its customers, and thus for the global economy. Products that sense and manage their own condition can be fixed before they break. They're managed remotely and increase productivity.For people who grew up at the dawn of the computer age, what STM products allow may be indistinguishable from magic. But your grandkids take it for granted.Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of the environmental thriller Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post STMicroelectronics Waiting on the IoT appeared first on InvestorPlace.
(Bloomberg) -- Applied Materials Inc. gave a bullish sales forecast for the current quarter suggesting its chipmaker customers have returned to spending more on their factories.The Santa Clara, California-based company is the largest maker of machinery used in the manufacture of semiconductors, which are among the most important parts of the electronics supply chain. Its customers include Samsung Electronics Co., Intel Corp. and Taiwan Semiconductor Manufacturing Co. That makes Applied Materials’ results and forecasts important early indicators of future demand in the electronics industry.Key InsightsFiscal second-quarter sales will be $4.34 billion, plus or minus $200 million, Applied Materials said Wednesday in a statement. That compares with analysts’ average estimate of $4 billion, according to data compiled by Bloomberg.Adjusted earnings will be 98 cents a share to $1.10 a share in the period ending in April, the company said. Analysts projected 92 cents.“We believe we can deliver strong double-digit growth in our semiconductor business this year as our unique solutions accelerate our customers’ success in the AI-Big Data era,” Chief Executive Officer Gary Dickerson said in the statement.Chip-equipment makers often experience wild earnings swings. Machines cost tens of millions of dollars each. Delaying factory build outs is one of the fastest ways a chipmaker can preserve cash when they’re unsure of future demand.Net income was $892 million, or 96 cents a share, in the fiscal first quarter, compared with $771 million, or 80 cents a share, a year earlier.Revenue gained 11% to $4.16 billion in the period ended Jan. 26, making it the first quarter of year-over-year growth in five quarters. Analysts were looking for $4.11 billion.Stock ReactionShares rose about 1% in extended trading after the announcement. The stock closed at $65.37 in New York and has increased 60% over the last 12 months.More InformationFor more details, click here.To see the statement, click here.To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Alistair Barr at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
AlphaOne Capital Partners was launched in 2009 by Paul Hondros and Daniel Niles. Mr Hondros is the fund’s President and CEO, while Mr Niles holds the position of the fund’s senior portfolio manager. Paul Hondros has a decade-long career focused on investment industry. He holds a BA in History from St. Joseph’s University. Since 1975 […]
Applied Materials has topped quarterly earnings estimates in the trailing four periods to help the stock jump 55% in the last 12 months. Is now the time to buy AMAT ahead of its Q1 fiscal 2020 earnings release...
Investors need to understand if Nvidia stock looks poised to continue its climb, with the chip company set to report its fourth-quarter fiscal 2020 results on Thursday, February 13...
Intel (NASDAQ:INTC) looks poised to outperform going forward, driven by multiple, strong, positive trends. Specifically, Intel stock is well-positioned to benefit from the growth of the cloud, data usage, AI and 5G.Source: Pavel Kapysh / Shutterstock.com On the competition front, Intel will benefit from the apparent closing of the gaps between its products and those of AMD (NASDAQ:AMD). Moreover, the valuation of Intel stock should rise closer to that of AMD and Nvidia (NASDAQ:NVDA).Encouragingly, Intel's Q4 data center revenue reachedan all-time record of $7.2 billion last quarter, versus analysts' average outlook of $5.4 billion. The unit's top line jumped 19% YoY, driven by strong demand from cloud infrastructure companies. Intel's revenue from cloud infrastructure vendors soared 48% YoY, Intel CFO George Davis told Reuters. Intel's overall results easily beat analysts' average outlook.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, Intel's chips are proving to be popular with developers of AI systems. * 7 Utility Stocks to Buy That Offer Juicy Dividends "Demand for our Intel Xeon scalable processors is very strong as customers continue to make Xeon the foundation for their AI infused data center workloads," Intel CEO Bob Swan said on the company's fourth-quarter results conference call last month. "One of the reasons Cascade Lake is our fastest ramping Xeon (computer processing unit) is its unrivaled AI performance," he added.Data centers are "increasingly are running AI algorithms to analyze data to, for instance, identify customer trends that otherwise might be too hard to spot," Dow Jones reported in December.Swan added that the company will launch new Cooper Lake chips in the first half of this year. The new chips will enable AI systems to be trained up to 60% faster than their predecessors, he stated. Facebook (NASDAQ:FB) is one of the companies reportedly using Intel's chips for AI. It sounds like Intel will continue to win a lot of deals from AI users. A Closer Look at Intel StockPotentially making Intel even stronger in the AI arena, the company in December bought Israel-based Habana Labs for about $2 billion. A maker of AI chips, Habana will "(help) advance our AI offerings for the data center with high-performance training and inference processors and a standards-based programming environment to address evolving AI workload, " Swan said.The company has stated that it expects data centers' demand for AI chips to reach nearly $12.5 billion in 2024. Intel's 2019 revenue from its AI-based products came in at $3.8 billion, so the company can likely meaningfully increase its AI revenue over the next few years.Swan identified Chinese eCommerce giant Alibaba (NASDAQ: BABA) as one of Intel's 5G customers. Closing the Gap With AMDIntel plans to release nine new 10-nanometer chips this year, including a mobile CPU, a 5G chip, an AI accelerator, and a Xeon chip for servers, data storage and networking. That should help INTC close the gap with AMD, as TheStreet noted that 10-nanometer chips are "competitive with the 7nm Taiwan Semiconductor (NYSE:TSM) node used for AMD's latest PC and server CPUs."TheStreet also reported that Intel is growing rapidly in areas where AMD "either doesn't compete or has a very limited presence, including "storage and network processors, Ethernet chips, vision processors for driver-assistance systems and server CPUs for telco networks and IoT/edge computing deployments."Moreover, Intel is expected to announce new Xeon Scalable server processors for servers that will include more cores than its previous offering.After launching the new processors, Intel will "do a better job of spec matching against AMD's [processors]," CRN quoted Marc Fertik, vice president of technology solutions at Ace Computers, an Intel partner, as saying.Similarly, the company last month unveiled its new 10-nanometer Tiger Lake processors that will offer "better graphics performance and increased use of artificial intelligence to handle processing workloads."Additionally, Intel stated that the processors' performance will be at least 10% better than its predecessor. And importantly, TechRadar recently reported that Intel's upcoming flagship Core i9-10900K chip for desktop processors "handily beats" AMD's competing Ryzen 9 3900X chip in terms of speed.According to PCGames, the performance of Intel's new chip will be about 15%-16% better than its predecessor.Intel has been cutting prices on a number of its products that compete with AMD's offerings. For example, INTC lowered the price of its Core i9 chips for desktops by 40%-50%, and it cut the price of its L-series Cascade Lake Xeon chips for servers by over $4,700.I think the company's strategy is to lower the margins of its products that compete with those of AMD. At the same time, it will look to keep its overall margins at least stable by selling more high-margin products in the segments in which AMD is not competing.Finally, recent data on AMD's share of the desktop market presented by tomsHardware appears to be upbeat for Intel stock. During each of the last three quarters of 2019, AMD's share rose 0 percentage points, 0.9 percentage points, and 0.3 percentage points, according to the data.During that time, the company's market share rose by just 1.2 percentage points. By contrast, over the three quarters that ended in the first quarter of 2019, its market share jumped by 4.1 percentage points. The data indicates that AMD's market share gains have slowed meaningfully to a level that will not hurt Intel very much. The Bottom Line on Intel StockThe forward price-earnings ratio of Intel is only 13.4, versus 31.75 for AMD and 34.5 for Nvidia, respectively. I believe that as Intel's growth accelerates due to its increased penetration of the AI and 5G markets, while it performs better against AMD, its 2020 guidance for roughly 2% revenue growth will prove to be extremely conservative.Consequently, the multiple of Intel stock will move closer to the levels of AMD and NVDA, enabling INTC to handily outperform the market.As of this writing, the author did not own the stocks of any of the aforementioned companies. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post This Is the Beginning of Another Great Run for Intel Stock appeared first on InvestorPlace.
We found three highly-ranked semiconductor stocks that recently topped earnings estimates that investors might want to buy right now...