Oct. 22, 2013, 9:57 AM
- Texas Instruments (TXN -2.5%) has been upgraded to Outperform by FBR following its Q3 beat and light Q4 guidance.
- SanDisk (SNDK +0.3%) has been upgraded to Market Perform by BMO a week after beating Q3 estimates and issuing solid guidance.
- AMD (AMD -3%) has been cut to Underperform by Bernstein. If it's any solace to bulls, the firm has been bearish on Intel for a year.
- China Mobile (CHL -0.5%) has been cut to Sell by UBS a day after posting Q3 results (I, II).
- Glu Mobile (GLUU +3.1%) has been started at Outperform by Cowen ahead of its Oct. 30 Q3 report.
- TripAdvisor (TRIP +3.4%) has been started at Outperform by Credit Suisse as part of a coverage launch for online travel names. Q3 results arrive tomorrow.
- RingCentral (RNG +1.1%) has received four bullish ratings, and no neutral/bearish ones, on underwriter coverage day.
Oct. 18, 2013, 5:46 PM
- After gradually rising in the week going into its Q3 report, AMD (AMD -13.4%) more than gave back its gains, in spite of beating estimates and issuing above-consensus Q4 guidance.
- While sell-side bulls trumpeted AMD's Xbox One/PS4 ramps and the strength of certain other businesses (SeaMicro, workstation GPUs), bears focused on weak PC CPU numbers and commentary (particularly for notebooks), as well as recent gross margin declines.
- Goldman (Sell) sees AMD continuing to lose ground to Intel (INTC -0.2%), which has gained notebook share this year with the help of its low-power Haswell parts, and only saw a 3% Y/Y drop in PC CPU division sales in Q3 (vs. 15% for AMD). The firm thinks AMD has ceded 300 bps of share to Intel since Q1 2012. The arrival of Intel's Bay Trail Atom CPUs could further pressure AMD on the low-end; AMD is countering with Temash.
- BofA/Merrill, which cut shares to Neutral, is worried PC weakness is going to offset console-related growth. CEO Rory Read predicted on the CC PC shipments will be down 10% both this year and next (IDC/Gartner aren't quite as pessimistic for 2014).
- Wedbush (Outperform), on the other hand, thinks bad news is priced in, and estimates console-related sales surged to $401M in Q3, or 28% of revenue.
Oct. 18, 2013, 9:34 AM
- AMD (AMD -12.7%) has been cut to Neutral by BofA/Merrill after beating Q3 estimates and providing above-consensus Q4 revenue guidance, but also reporting a 15% Y/Y drop in CPU division sales due to PC weakness.
- Verizon (VZ +0.8%) has been upgraded to Buy by Stifel a day after beating Q3 estimates and reporting better-than-expected mobile subscriber adds.
- Amazon (AMZN +2.4%) has been upgraded to Buy by UBS ahead of its Oct. 24 Q3 report.
- VMware (VMW +2.8%) has been upgraded to Overweight by JPMorgan ahead of Monday's Q3 report.
- T-Mobile USA (TMUS +2.7%) has been added to Goldman's Conviction Buy list ahead of its Nov. 5 Q3 report.
- Intuit (INTU +2.6%) has been upgraded to Buy by BofA/Merrill.
- Align Technology (ALGN +24.4%) has been upgraded to Buy by Cantor following its Q3 beat.
- LG Display (LPL -0.2%) has been cut to Hold by Craig-Hallum after issuing a Q4 warning.
- Ultratech (UTEK -10.2%) has been cut to Hold by Canaccord following its Q3 miss.
- Sierra Wireless (SWIR -1%) has been cut to Market Perform by Raymond James; Q3 results arrive on Nov. 7.
- Aspen Technology (AZPN -0.9%) has been cut to Neutral by JPMorgan.
- Analog chipmakers International Rectifier (IRF -1.7%) and Monolithic Power (MPWR -1.3%) have been cut to Market Perform by Wells Fargo.
- U.S. Cellular (USM -1.2%) has been started at Underperform by FBR.
Oct. 18, 2013, 9:15 AM
Oct. 17, 2013, 5:42 PM
Oct. 17, 2013, 4:50 PM
- AMD is guiding for Q4 revenue to be up 5% Q/Q (+/- 3%); the midpoint is above a consensus for 3.4% growth. But gross margin is expected to fall another 100 bps Q/Q to 35%, after dropping 300 bps in Q3 to 36% (in-line with guidance, but aided by a 100 bps boost from an inventory sale). In July, margin concerns led AMD to sell off following its Q2 report.
- CPU division sales -6% Q/Q and -15% Y/Y to $790M, thanks to PC industry weakness and share loss. The division had op. income of $22M. Intel's PC CPU division sales rose 4% Q/Q and fell 3% Y/Y in Q3.
- Graphics & Visual Solutions (inc. GPUs and consoles) sales soared 110% Q/Q and 96% Y/Y thanks to the console ramps. Division op. income totaled $79M.
- CPU ASP was flat Q/Q and down Y/Y. GPU ASP was down Q/Q and Y/Y. Semi-custom and embedded sales (inc. consoles) made up 30% of revenue.
- Thanks to job cuts, R&D spend -12% Y/Y to $288M. MG&A -18% to $155M.
- AMD was free cash flow positive in Q3, and expects to be so again in Q4. Cash/investments stood at $1.2B at the end of Q3, and debt at $2.05B.
- CC at 5:30PM ET. Q3 results, PR, CFO comments, slides
Oct. 17, 2013, 4:16 PM
- Advanced Micro (AMD): Q3 EPS of $0.04 beats by $0.02.
- Revenue of $1.46B (+15% Y/Y) beats by $0.05B. (PR)
Oct. 17, 2013, 12:10 AM
Oct. 16, 2013, 5:35 PM
Oct. 14, 2013, 9:42 AM
- Alcatel-Lucent (ALU +1.4%) has been upgraded to Overweight by Barclays, and Ericsson (ERIC -3.3%) cut to Underweight.
- AMD (AMD +1.4%) has been upgraded to Outperform by Wedbush.
- Stratasys (SSYS +2.2%) has been upgraded to Buy by Dougherty & Co.
- Glu Mobile (GLUU +1.3%) has been upgraded to Buy by B. Riley.
- Mattson (MTSN +4.9%) has been upgraded to Buy by B. Riley.
- Expedia (EXPE -6.9%) has been cut to Hold by Deutsche.
- Atmel (ATML -1.9%) has been cut to Sector Perform by Pac Crest.
- As part of a coverage launch for chip equipment stocks, KLA-Tencor (KLAC +0.6%) and Lam Research (LRCX -0.4%) have been started at Overweight by JPMorgan, and Applied Materials (AMAT -1.2%) has been started at Neutral.
Oct. 9, 2013, 4:35 PM
- While the number isn't pretty, it's notably better than the 11.4% drop IDC estimated for Q2, as well as the firm's respective Q3 and full-year forecasts of -9.5% and -9.7%. Easier comps helped out a bit (shipments fell 8.6% Y/Y a year ago), as did "channel intake of Windows 8.1-based systems" in September. (PR)
- As was the case in Q2, U.S. and enterprise were areas of strength. U.S. shipments only fell 0.2%, and enterprise volumes saw a "slight uptick." But tablet cannibalization led Asia-Pac (exc. Japan) shipments to fall 8.8%. EMEA declined in-line with expectations, while Japan outperformed.
- The mix shift is a positive for H-P (HPQ - 27% U.S. share vs. 17.1% global share), Intel (INTC - higher ASPs), and Microsoft (MSFT - higher ASPs and less piracy). It hurts Lenovo (LNVGY.PK), but the Chinese firm was still the market's top vendor, and saw its global share rise 160 bps Y/Y to 17.3%.
- H-P was #2; its share rose 130 bps. #3 Dell, which has gotten more aggressive with its pricing, saw its share rise 90 bps to 11.7%.
- Apple's (AAPL) U.S. PC share, which has been rising in recent years, fell 140 bps to 11.6%; the enterprise mix shift and pending MacBook Pro/Mac OS X refreshes likely played roles.
- Other affected industry names: AMD, NVDA, MU, STX, WDC.
- Update: Gartner thinks shipments fell 8.6% Y/Y.
Oct. 7, 2013, 2:37 PM
- Verzion's new cloud infrastructure platform, announced last week to positive feedback, will use SeaMicro's (AMD -0.6%) SM15000 high-density server. AMD adds it "co-developed additional hardware and software technology" with Verizon over the last two years to enable "a higher level of control over security and performance [service level agreements]." (PR)
- AMD unveiled the SM15000 a year ago, claiming at the time SeaMicro's proprietary interconnect tech allowed the server to pack 256 CPUs (both AMD and non-AMD chips are supported) in a single rack. In addition to its densities, AMD talks up the programmability of the SM15000's hardware, and its use of a modular architecture that allows CPU, storage, and networking resources to be separately upgraded; Intel is working on Xeon CPUs meant to enable similar hardware.
- Rackspace certified the SM15000 for use with its OpenStack cloud infrastructure platform in February.
Sep. 30, 2013, 10:04 PM
- "We believe back to school PC demand has been virtually absent," says Sterne Agee's Vijay Rakesh in a critical note on Intel (INTC). Moreover, Sterne thinks high inventories and weak demand are pointing to the absence of a holiday season sales boost (normally 5%-7%) as well.
- Rakesh now sees PC sales falling 10.7% Y/Y in Q4, worse than a prior forecast for a 9.6% drop. He also questions the ability of smartphone/tablet CPU sales to offset declining PC CPU sales for Intel, given notebook processors typically sell for several times as much as their mobile counterparts. Oddly enough (given Nokia's limited smartphone share), Rakesh also suggests the Microsoft-Nokia deal is a negative for the chip giant.
- In August, IDC lowered its 2013 PC shipment growth forecast to -9.7% from a prior -7.8%. The firm estimates PC shipments fell 11.4% Y/Y in Q2 (Gartner is at 10.9%), and has predicted tablet shipments (aided by seasonality) will exceed PC shipments in Q4.
- Other PC industry names in the crosshairs: MSFT, HPQ, AMD, NVDA, MU, STX, WDC, LNVGY.PK.
Sep. 27, 2013, 2:57 PM
- With AMD (AMD -0.4%) aggressively pricing its new R7 and R9 (Hawaii) GPUs in an effort to win back share recently lost to Nvidia (NVDA -0.7%), graphics card OEM sources tell Digitimes they expect Nvidia to be pressured to offer price cuts of its own by late November, and to launch new mid-range ($149-$249) GPUs.
- Disclosed MSRPs for the first Hawaii-based graphics cards range from $89 for the entry-level R7 250 to $299 for the R9 280X. Pricing hasn't yet been disclosed for the flagship R9 290X, though it will be available for pre-order on Oct. 3.
- There are already expectations Nvidia will refresh its Kepler GPU line this fall, ahead of launching its next-gen Maxwell GPUs in Q1 2014.
Sep. 26, 2013, 11:50 AM
- AMD (AMD +0.5%) has officially launched its anticipated Hawaii GPUs. The chips, which use a 28nm manufacturing process, are pivotal to AMD's efforts to win back GPU share recent lost to Nvidia (NVDA -0.3%), are offered through two product families: the high-end R9 series and the mid-range R7.
- Hawaii supports AMD's Mantle API, which the chipmaker declares will enable "a deeper level of hardware optimization no other graphics card manufacturer can match." Also included is TrueAudio, an integrated programmable audio pipeline for game developers (AMD claims it's an industry first).
- AnandTech observes that, as a low-level API optimized for AMD GPUs, Mantle doesn't come with the performance costs attached to higher-level APIs meant for multiple GPUs, such as Direct3D and OpenGL. It also sees Mantle simplifying the process of bringing console games to PCs (thanks to AMD's console wins), and improving AMD's developer support.
- For now, Hawaii will square off against Nvidia's mainstay Kepler GPUs. Nvidia's next-gen Maxwell GPUs are expected in Q1.
- Meanwhile, Nvidia is partnering with popular online game platform Valve to optimize the graphics performance of the latter's SteamOS, a Linux variant being created with big-screen gaming systems in mind.
- AllThingsD makes a case that Valve's developer ties and SteamOS' potential to enable upgradable gaming systems could make Steam systems a disruptive force in the gaming industry, even if they aren't console killers.
- AMD GPU event live blog
Sep. 11, 2013, 6:02 PM
- Vertex (VRTX) +3.4% AH and Ametek (AME) +1.2%. AMD -0.5% AH and SAIC (SAI) -0.1% (those declines might get bigger before the dust settles). AMD and SAIC are joining the S&P MidCap 400, and Vertex and Ametek are leaving it. The changes will take place after the Sep. 20 close. (PR)
- Also: Capstead Mortgage (CMO) is replacing Rue 21 (RUE) in the S&P SmallCap 600 following the Sep. 19 close. CMO +2.9% AH.
Advanced Micro Devices, Inc. is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. It design and integrate technology for intelligent devices, including personal computers, game consoles and cloud servers. The company... More
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