Oct. 14, 2015, 3:10 PM
- Though still well below its May/June highs, the Philadelphia Semi Index (SOXX +2.9%) has reached its highest levels since August following calendar Q3 results from Intel, Linear Technology, and ASML, and reports SanDisk and Fairchild are in buyout talks with potential suitors (respectively Micron/Western Digital and ON Semi/Infineon). The Nasdaq is down slightly.
- Intel (up 1.5%) beat Q3 estimates and provided in-line Q4 guidance. ASP strength and signs of stabilizing PC demand are overshadowing a full-year guidance cut for Intel's server CPU division, Linear (up 4.6%) posted mixed FQ1 results and issued above-consensus FQ2 guidance.
- Lithography equipment giant ASML (ASML -0.4%) beat Q3 EPS estimates and posted nearly in-line sales, but also guided for Q4 revenue of €1.4B ($1.61B), below a $1.77B consensus. Soft demand from foundry clients is blamed. Credit Suisse and Cowen argue ASML is hurt by a lack of exposure to the 3D NAND flash ramp.
- Aside from Linear and companies associated with the SanDisk/Fairchild reports, chipmakers seeing big gains include NXP (NXPI +4.6%), Freescale (FSL +3.6%), Himax (HIMX +4.2%), Qorvo (QRVO +4.9%), Cypress (CY +6.9%), AppliedMicro (AMCC +4.9%), and Linear/Fairchild peers Semtech (SMTC +4.7%), MangaChip (MX +4.6%), Diodes (DIOD +4%), and Power Integrations (POWI +4.2%). Chip packaging/testing firms ChipMOS (IMOS +3.8%) and Amkor (AMKR +5.9%) are also rallying.
- With much already priced in, chip equipment makers are also doing well, in spite of ASML's guidance, a fresh $400M cut to Intel's 2015 capex budget (to $7.3B), and a Gartner forecast for global wafer fab equipment spend to drop 0.5% in 2015 and 2.5% in 2016 before returning to growth.
- Chip equipment gainers include Lam Research (LRCX +3.6%), KLA-Tencor (KLAC +1.6%), Kulicke & Soffa (KLIC +3.3%), and Teradyne (TER +1.9%). Possibly helping: Intel stated on its earnings call its capex will rise in 2016 from 2015's depressed levels.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Sep. 4, 2015, 12:38 PM
Sep. 3, 2015, 9:38 AM
- Diodes (NASDAQ:DIOD) is acquiring connectivity/timing IC vendor Pericom Semi (NASDAQ:PSEM) for $17/share, or $400M, in cash. The price represents a 40% premium to Pericom's Wednesday close.
- The purchase is expected to be immediately accretive, and be financed in large part by debt - Diodes recently upped its credit facility by $200M. It's expected to close in Q4.
- Diodes CEO Keh-Shew Lu: "This transaction broadens Diodes' analog footprint and adds a strong mixed-signal connectivity offering that will drive expanded product content in target market applications. Also, Pericom's extensive timing product lines complement Diodes' standard product portfolio and broaden our analog footprint." Like Diodes, Pericom is exposed to a wide variety of consumer electronics, networking/telecom, and enterprise IT end-markets.
- Pericom is halted. Diodes has moved higher.
- Update (10:04AM ET): Pericom has resumed trading, and is up 37.5% to $16.75.
Jun. 5, 2015, 11:10 AM| Jun. 5, 2015, 11:10 AM
Mar. 27, 2015, 10:34 AM
- Raymond James has downgraded analog/mixed-signal chipmakers Diodes (DIOD -4.7%) and Semtech (SMTC -4.9%) to Outperform from Strong Buy, and peer Power Integrations (POWI -3%) to Market Perform from Outperform.
- All three companies sold off on Wednesday amid a chip stock rout that some blamed on cautious remarks from TSMC about near-term demand. Semtech fell earlier this month due to the light FQ1 guidance provided with an FQ4 beat.
Sep. 9, 2014, 5:36 PM
Dec. 9, 2013, 5:47 PM
Nov. 11, 2013, 8:41 AM
- Twitter (TWTR) has been started at Neutral by Sterne Agee. Shares -1.4% premarket after dropping 7% on Friday in the wake of neutral/bearish coverage launches. Shares still +58% from their $26 IPO price.
- Veeva Systems (VEEV) has received four bullish ratings and two neutral ones on underwriter coverage day. Shares +0.6%.
- American Tower (AMT) has been upgraded to Buy by Citi.
- Youku (YOKU) has been upgraded to Buy by Brean ahead of Thursday's Q3 report. Shares +3.1%.
- BT has been upgraded to Overweight by JPMorgan after outbidding Sky for the U.K. TV rights to Champions League games.
- Netgear (NTGR) has been upgraded to Sector Perform by RBC.
- Deutsche Telekom (DTEGY, DTEGF) has been cut to Sell by Goldman after striking a $729M deal to buy wireline carrier GTS Central Europe.
- Lam Research (LRCX) has been cut to Neutral by Susquehanna.
- Diodes (DIOD) has been cut to Outperform from Strong Buy by Raymond James ahead of tomorrow's Q3 report.
Oct. 11, 2013, 9:23 AM
- Intel (INTC) has been cut to Neutral, and Nvidia (NVDA) to Underperform, by Macquarie. Intel's Q3 report arrives on Tuesday. Intel -0.6% premarket, Nvidia -0.9%.
- Micron (MU) has been cut to Underperform by Wells Fargo following its FQ4 results (I, II) and FQ1 pricing guidance. Shares -2.1%.
- Synaptics (SYNA) has been cut to Neutral by JPMorgan two days after announcing the Validity Sensors deal and forecasting strong FQ1 sales. Shares -1.5%.
- Corning (GLW) has been cut to Neutral by Piper. Shares -1%.
- Iron Mountain (IRM) has been cut to Underweight by Barclays a day after announcing CFO Brian McKeon is leaving. Shares -2.2%.
- LG Display (LPL) has been upgraded to Buy by Citi.
- Diodes (DIOD) has been upgraded to Buy by Longbow.
Dec. 27, 2012, 5:46 PM
Dec. 27, 2012, 11:23 AM
Though it's paying a giant premium to acquire BCD Semiconductor (BCDS +94%), Diodes (DIOD +2.9%) is trading higher after announcing the deal, as the Street applauds BCD's potential to expand Diodes' product line and Chinese customer base. BCD is currently trading at $7.72, 3.5% below Diodes' $8/share buyout price.| Dec. 27, 2012, 11:23 AM
Dec. 26, 2012, 4:31 PM
Diodes (DIOD) is buying BCD Semiconductor (BCDS), a Chinese analog chipmaker incorporated in the Cayman Islands, for $151M in cash, or $8/share. The price represents a 101% premium to BCD's close. BCD, which has $39M in cash/equivalents and has posted $112M in revenue over the last 12 months, expands Diodes' analog product line and gives it a chance to cross-sell to the major Chinese OEMs that rely on BCD. (PR)| Dec. 26, 2012, 4:31 PM
Nov. 9, 2012, 10:34 AM
Analog chipmakers Diodes (DIOD -7%) and Microsemi (MSCC -5%) are heading south following their Q3 reports (I, II). Though Diodes' Q4 revenue guidance ($160M-$167M vs. $164M consensus) was in-line, its gross margin forecast of 23%-27% is underwhelming, given the midpoint is below Q3's 26.2%. Microsemi is guiding for Q4 revenue of $262M-$268M and EPS of $0.57-$0.60, mostly below a consensus of $268.1M and $0.60. The chip industry remains mired in a slump. (Diodes PR) (Microsemi PR)| Nov. 9, 2012, 10:34 AM
Jun. 29, 2012, 11:19 AM
Diodes (DIOD +6.2%) rallies after Needham starts coverage with a Buy and $20 PT. The firm praises the analog chipmaker's manufacturing abilities, which have helped it gain share, and thinks the company is well-positioned to grow rapidly during the chip industry's next up-cycle.| Jun. 29, 2012, 11:19 AM
May 9, 2012, 12:37 PM
Analog chipmaker Diodes (DIOD -8.5%) is off sharply post-earnings. The decline comes even though Q1 EPS was in-line and the company guided for Q2 revenue of $155M-$164M, largely above a $155.5M consensus. A Q1 gross margin of 23.3% (down 150 bps Q/Q and 1220 bps Y/Y), which Diodes attributes to weak pricing, mix shifts, and inventory reductions, could be weighing on shares. Q2 gross margin is expected to be 24%-28%. (PR) (transcript)| May 9, 2012, 12:37 PM
Mar. 9, 2012, 10:49 AM
Analog chipmaker Diodes (DIOD +5.7%) jumps after slightly adjusting its Q1 revenue guidance range to $140M-$148M (prior range was $138M-$148M), a move that calmed investors who have seen earnings estimates for the company steadily move lower. Diodes' gross margin and operating expense guidance remains unchanged.| Mar. 9, 2012, 10:49 AM