More than half of the sell-side analysts covering Altera (NASDAQ:ALTR) have a Buy/Strong Buy rating on the shares, with many of them calling for a catch-up trade relative to Xilinx (NASDAQ:XLNX) driven by gains in 28nm and a strong start with Intel's (NASDAQ:INTC) 14nm process. Discounted free cash flow does suggest that these shares are undervalued enough to be worth a good look, but management needs to deliver better margins and investors should not underestimate the challenges in competing with Xilinx.
A Quick Summary
Together Xilinx and Altera dominate the $4.5 billion-plus PLD/FPGA space with around 90% share. These logic chips compete with ASICs and ASSPs; the primary difference being that the latter...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|