Thu, Oct. 22, 12:24 PM
- The Philadelphia Semi Index (SOXX +3%) has risen above $90 for the first time since July on a day the Nasdaq is up 1.5%. Helping out: Texas Instruments (TXN +10.4%) soundly beat Q3 estimates, reported positive growth for its analog and embedded processing (DSP/microcontroller) units in spite of a customer inventory correction, and (with the help of iPhone content gains) provided mostly above-consensus Q4 guidance.
- Meanwhile, Cypress Semi (up 4.1%) is rallying in spite of posting mixed Q3 results and issuing light Q4 guidance. A new $450M buyback is helping.
- TI/Cypress microcontroller peers NXP (NXPI +4.2%), Freescale (FSL +3.5%), STMicroelectronics (STM +2.5%), and Microchip (MCHP +2.9%) are among the gainers. As are TI analog/mixed-signal peers ON Semi (ON +5%), Intersil (ISIL +3.2%), IDT (IDTI +3.6%), Monolithic (MPWR +3.3%), and Silicon Labs (SLAB +2.6%).
- Other notable gainers include InvenSense (INVN +2.6%), Nvidia (NVDA +3.5%), Cavium (CAVM +4.4%), Knowles (KN +3.6%), and Lattice Semi (LSCC +7%).
- On its earnings call (transcript), TI mentioned automotive chip demand (boosted by growing chip content in various systems) was strong. Industrial sales were roughly flat (better than expected), and personal electronics benefited from "demand from one customer" (likely Apple). Wireless infrastructure fell 30% Y/Y (Chinese weakness), but rose Q/Q.
- Chip stocks also outperformed yesterday after Western Digital announced it's buying SanDisk, Lam Research announced it's buying KLA-Tencor, and CPU core giant ARM (ARMH +2.7%) beat Q3 revenue estimates (EPS slightly missed) with the help of a 20% Y/Y increase in ARM chip shipments to 3.6B, and stated it expects 2015 revenue to be in-line with market expectations.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Wed, Oct. 21, 6:30 AM
Tue, Oct. 20, 5:30 PM
Wed, Jul. 22, 2:22 PM
- ARM (NASDAQ:ARMH) has slumped to its lowest levels since January after posting roughly in-line Q2 results and stating it expects 2015 results to match market expectations.
- Tech licensing revenue only rose 3% Y/Y in Q2, while royalty revenue (based on Q1 shipments) rose 30% to $175.9M on the back of a 26% Y/Y increase in ARM-based chip shipments to 3.4B. Annual chip shipment growth slowed a bit from Q1's 31%.
- A record 54 processor core licenses were inked, up from 30 in Q1 and 41 a year ago. 20 of the licenses were for low-power Cortex-M CPU cores (aimed at embedded/IoT devices), 15 were for the more powerful Cortex-A, 8 for the Cortex-R (used for real-time processing), and 9 for Mali GPU cores. 7 licenses were taken out for the 64-bit ARMv8-A architecture.
- Weighing on license sales growth: No costly architectural licenses were taken out. ARM still expects "medium-term" license growth of 5%-10%.
- Software/tool revenue rose 4% Y/Y to $13.7M, and services revenue 11% to $16.5M. Operating expenses rose 13% to £99.3M ($154.9M).
- Canaccord's Matt Ramsay remains bullish: He notes backlog rose 2% Q/Q, and predicts royalty growth will remain strong thanks to "much broader contributions from higher-royalty-rate ARMv8 and big.LITTLE mobile processors and share gains in Mali graphics."
- Apple and Linear Technology's calendar Q2 reports could be contributing to ARM's selloff - many chipmakers/ARM licensees are also posting steep losses.
- Q2 results, PR, earnings slides (.pdf)
Wed, Jul. 22, 6:06 AM
Wed, Jul. 22, 4:14 AM
- The chief executive of ARM (NASDAQ:ARMH), the chipmaker which saw a spike in its share price this year around Apple takeover rumors, has told CNBC that remaining independent is the "right thing" for his company.
- "There are rumors all the time about us being acquired. But when you look at our business model...it's much less expensive for them to license our technology than to buy the whole company." said Simon Segars.
- The announcement came as ARM reported Q2 results. Profits came in at £124M ($193M), up 31% Y/Y, but slightly below market expectations of £126M.
Tue, Jul. 21, 5:30 PM
Wed, May 6, 9:06 PM
- AMD has guided (.pdf) at its 2015 analyst day for 2H15 revenue to rise 15% (+/- 3%) from an expected 1H15 level of ~$2B. That implies full-year revenue of ~$4.3B, close to a $4.28B consensus.
- Gross margin is expected to be in a ~32%-34% range in 2H15 after amounting to ~32% in 1H15, and operating expenses are expected to fall to ~$680M-$700M from ~$715M. Free cash flow is expected to be negative in 1H15, and positive in 2H15.
- Long-term targets: 36%-40% GM, over $0.50/year in EPS, double-digit revenue growth from AMD's server CPU, embedded processor, and pro GPU ops, mid-single digit growth from its semi-custom (inc. console APU) and other GPU ops, and flat to down PC CPU revenue. AMD plans to use any cash in excess of $1B to retire debt (it had $906M at the end of Q1).
- AMD has also officially unveiled its 7000 Series notebook CPUs (codenamed Carrizo). The cheapest version has two 1.5GHz. cores, and a 10W max power draw.; the most powerful version had four 2.5GHz. cores, a 12-25W max power draw, and a Radeon R5 GPU. Also announced: A set of new mainstream desktop and notebook GPUs (the Radeon 300 series), and price cuts for A-series desktop CPUs (prices now range from $42-$127).
- In Q2, AMD plans to launch its first GPU to support High Bandwidth Memory (HBM); performance/watt is said to be over 3x greater than current-gen GDDR5 memory. In 2016, it plans to launch GPUs that support HBM and use a FinFET (3D transistor) process; TSMC's 16nm process is a possibility. AMD is counting on the GPUs to reverse share losses to Nvidia (NASDAQ:NVDA).
- Also launching in 2016: Zen, a next-gen CPU core said to handle 40% more instructions per clock cycle and feature a high-bandwidth/low-latency cache system. Samsung/GlobalFoundries' 14nm process is expected to be used; that would narrow Intel's (NASDAQ:INTC) manufacturing process edge, given Intel is currently at 14nm (10nm next year) and AMD at 28nm. Earlier today, SA author Alex Cho took a look at AMD's leaked 2016 Zen CPU roadmap.
- On the ARM (NASDAQ:ARMH) front, AMD is abandoning Project Skybridge, which sought to create "ambidextrous" platforms supporting either x86 or ARM CPUs. The timetable for the company's custom K12 ARM core has been pushed out from 2016 to 2017.
- AMD's analyst day slides
Tue, Apr. 21, 2:49 PM
- ARM (NASDAQ:ARMH) is less than $1 away from a 52-week high of $54.64 after beating Q1 revenue estimates on the back of a 31% Y/Y increase in processor royalty revenue (26% excluding a one-time year-ago event) to $167.5M, a sharp acceleration from Q4's 16% growth. Physical IP royalty revenue rose 5% to $23.9M.
- Royalties were collected on the Q4 shipment of 3.8B ARM-based chips (+31% Y/Y). Both strong mobile chip sales (aided by smartphone growth and the end of an inventory correction) and a 40% increase in embedded shipments (microcontrollers and smart cards were "particularly strong") played a role.
- Licensing revenue was softer, growing only 3% to $133.2M. Processor licensing fell 2% to £109.3M; physical IP licensing grew 31% to $23.9M. 30 processor licenses were signed (5 from new clients), down from 53 in Q4 and up from 26 a year ago. ARM still expects 5%-10% annual license revenue growth "in the medium term."
- Software/tool revenue fell 9% to $14.7M; service revenue rose 6% to $15.6M. Operating expenses rose 19% Y/Y to £100M ($149M), with headcount rising 15% to 3,397. Free cash flow totaled £68.5M ($102M).
- Mobile/connectivity products made up 46% of processor shipments, embedded 34%, enterprise 14%, and home products 6%. The high-end Cortex-A CPU core series accounted for 18% of shipments, and the low-power Cortex-M 43%. 8 Cortex-A and 16 Cortex-M licenses were respectively taken out, as were Mali GPU core licenses a 1 costly architectural license.
- ARM expects Q2 revenue to be "in line with current market expectations." Royalties are expected to drop Q/Q due to seasonality.
- Q1 results, PR (.pdf), slides (.pdf)
Tue, Apr. 21, 6:16 AM
Mon, Apr. 20, 5:30 PM
Wed, Feb. 11, 4:29 AM
- "License revenue momentum has continued throughout the year," said ARM Holdings' (NASDAQ:ARMH) CFO Tim Score, as the company posted strong Q4 results.
- With processor royalty revenue up 16% Y/Y, net profit came in at £72.8M ($111M), compared to a loss of £6.2M a year earlier.
- The semiconductor giant also said it expects revenue to be up 10% Y/Y in Q1, reflecting revenue stemming from robust sales of Apple's iPhone 6.
- ARMH +3.5% premarket
Tue, Feb. 10, 5:30 PM
Oct. 31, 2014, 11:31 AM
- Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
- Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
- On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
- Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
- Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%. ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
- Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Oct. 21, 2014, 5:57 AM
- ARM Holding's (NASDAQ:ARMH) Q4 guidance is "underwhelming," SocGen says, given previous expectations of a strong H2.
- The drop in value per new license sold implies that most of ARM's larger deals have been completed, firm says.
- Any positive aura from Apple's iPhone strength is "more than offset" by ARM's weakness in the broader smartphone market.
- SocGen maintains Sell rating with implied 18% downside.
- Shares -3.7% in London.
Oct. 21, 2014, 5:48 AM
ARM Holdings PLC designs microprocessors, physical IP and related technology and software, and sells development tools to enhance the performance and energy-efficiency of high-volume embedded applications.
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