Fri, Dec. 2, 12:13 PM
- Analyst Vijay Rakesh notes fundamentals across the subset remain in place and despite coming up on a seasonally weaker March quarter, sees recent downturn resulting in an acquiring opportunity.
- Highlights a semiconductor group trading at 2013 levels and sees forthcoming catalysts stemming from robust earnings growth, cost synergies, positive industrial, automotive, defense and aerospace, and further M&A consequent expected regulatory climate improvements.
- Recommends Intel (INTC +1%), Qualcomm (QCOM +2.4%), Micron Technology (MU +3.1%), Broadcom (AVGO +0.7%), ON Semiconductor (ON +0.7%), Cypress Semiconductor (CY +0.6%) and Microsemi (MSCC +0.6%).
Fri, Dec. 2, 10:21 AM
- Qualcomm's (QCOM +2.2%) reversing positive following widespread selling across the technology sector yesterday, with analyst Tom Sepenzis labeling the development a buying opportunity, restating shares at Outperform and sustaining target.
- Cites positives including expansion into new markets (IoT, automotive, server) and competition from Intel involving mobile baseband modem chips that may not be as strong as feared, with Sepenzis suggesting Qualcomm may be in line to fully recapture Apple's iPhone business should Intel's reportedly lacking performance regarding chips it's supplying for the device go undeveloped.
Thu, Dec. 1, 10:55 AM
- Notable early (2%+ losses): Alphabet (GOOGL -2.25%, GOOG, -2%) Facebook (FB -3.4%), Twitter (TWTR -3.9%), Oracle (ORCL -3.3%), Salesforce (CRM -4.2%), VMware (VMW -3.5%), Alibaba (BABA -2.7%)
- 5%+: Qualcomm (QCOM -4.9%), Nvidia (NVDA -7%), Advanced Micro Devices (AMD -7.1%), Micron Technology (MU -5.5%)
- 8%+: Cirrus Logic (CRUS -8.8%), Gigamon (GIMO -9.5%)
Mon, Nov. 28, 7:27 AM
- The team at Bank of America pulls Qualcomm (NASDAQ:QCOM) from its U.S. 1 List following the stock's big run - up 37% for the year.
- Shares are down 0.8% in very thin premarket action.
Sat, Nov. 26, 9:11 AM
- It's no surprise that Republican administrations in general are seen as more friendly towards mergers than Democrats, and since the election, arbitrage spreads (the difference between a target's deal price and its current price) have tightened to the 8-9% range from 11%.
- However, on an annualized basis, there are still plenty of deals out there offering double-digit returns.
- Source: Vito Racanelli in Barron's
- Merger-arb shop WallachBeth Capital is fan of Harman International Industries (NYSE:HAR), which earlier this month drew a cash bid from Samsung for $112 per share vs. its close Friday of $109.74. Another pick is B/E Aerospace (NASDAQ:BEAV) which closed at $59.79 and has a cash and stock deal in hand from Rockwell Collins (NYSE:COL) for $62 per share.
- Lutetia Capital likes Cabela's (NYSE:CAB), which closed the week at $62.50 vs. Bass Pro Shops' $65.50 bid.
- The Merger Fund's Roy Behren is confident Qualcomm's (NASDAQ:QCOM) bid for NXP Semiconductors (NASDAQ:NXPI) will pass regulatory muster. NXP's close yesterday of $99.51 is a full 10.5% below the $110 cash offer. If the deal closes in nine months, it's an annualized return of 12.6%.
- Another deal with maybe overblown antitrust concerns is Danone/WhiteWave Foods (NYSE:WWAV). The spread is just 2%, but a close early next year would mean an annualized return over 10%.
- Seeking Alpha contributor Chris DeMuth stays on top of merger arb spreads with his M&A Daily.
Fri, Nov. 18, 9:29 AM
- October 27: Qualcomm to buy NXP Semiconductors for $47B
- Qualcomm's (NASDAQ:QCOM) offer ($110 per every outstanding share) for NXP Semiconductors (NASDAQ:NXPI) is set to expire February 6, 2017 at 5PM ET.
- Required satisfaction of minimum tender conditions and regulatory approvals in various jurisdictions noted.
Thu, Nov. 17, 9:10 AM
- Samsung Electronics (OTC:SSNLF), having begun mass 10nm processor fabrication last month and consequently becoming the first within the industry to do so, is capable of producing 10nm chips with 30% greater efficiency, 27% higher performance and 40% lower power consumption over its previous 14nm technology.
- Qualcomm's (NASDAQ:QCOM) Snapdragon 835 is at present in production and expected to ship commercially in H1 2017.
- Additionally bundled with the development, Qualcomm's fast-charging technology has been upgraded to Quick Charge 4, which will become available with Snapdragon 835. Associated Dual Charge technology will enable 20% faster charging times and up to 30% greater efficiency over the Quick Charge 3.0 predecessor. A five or more hour battery extension for premium smartphones is also claimed on five minutes of charging.
- Get small, go big: Meet the next-gen Snapdragon 835
Wed, Nov. 16, 2:35 PM
- In a note on the hypothesis, analyst Ian Ing spotlights advantage for Nvidia's (NVDA +6.2%) GPUs, Intel's (INTC -0.5%) and Xilinx's (XLNX -0.4%) field-programmable gate arrays, and Intel's co-processors and full-custom solutions. Regarding Advanced Micro Devices (AMD +9.4%), considers to be "too resource constrained to fully address the opportunity."
- Potential and acceleration in data center machine learning ($2B-$4B), autonomous driving ($9B+ per 10% unit share increment) and deep learning ($4B) [drones, robots, niche verticals etc.] represent base calculation of the $15B+ figure.
- With developments evolving quickly in the space, and other supply players involved (i.e. Qualcomm/NXP Semiconductors etc.), shifts in advantage and opportunity throughout the field, and these names, are of course nonetheless constantly in motion.
- Ing rates Nvidia and Intel at Buy with respective $87 (current price $91.44) and $44 (current price $34.73) targets. Xilinx is set at Neutral with a $35 target (current price $53.66) while Advanced Micro Devices is unrated in the issued commentary.
Wed, Nov. 16, 1:46 PM
- The advancement of virtual and augmented reality, and resulting opportunity and advantage for mobile, is in focus through the relationship.
- As demand for these technologies increases, combinations across the space are cited to become even more necessary.
- Qualcomm (QCOM -0.7%) maintains its Snapdragon 800 series of processors "will accelerate the next generation of VR and AR applications." The "strengths of both parties" relating to this particular collaboration, are intended to be of assistance to that end.
Thu, Nov. 10, 7:53 AM
Wed, Nov. 2, 6:22 PM
- Results – revenue $6.2B (+13.8% Y/Y, $360M above estimates), EPS $1.28 ($0.15 above estimates), operating income $2.2B (+35% Y/Y), net income $1.9B (+33% Y/Y)
- Segment breakdown – QCT (revenue $4.124B [+14% Y/Y], EBT $687M [+145% Y/Y] MSM chip shipments 211M [+4% Y/Y]); QTL (revenue $1.885B [+6% Y/Y], EBT $1.584B [+7% Y/Y], total reported device sales $74.2B [+27% Y/Y], 3G/4G device shipments 401M-405M [+45% Y/Y], 3G/4G average selling price $181-$187 [-12% Y/Y])
- Repurchases and dividends – Q4 $1.007B, FY $6.912B
- Q1 projections – revenue $5.7B-$6.5B (1%-13% Y/Y decline), EPS $1.12-$1.22 (consensus $1.22), MSM chip shipments 205M-225M (7%-15% Y/Y decline), total reported device sales $58B-$66B (4%-9% Y/Y decline)
- Qualcomm (NASDAQ:QCOM) CEO Steve Mollenkopf: "Our fiscal fourth quarter EPS was above the high end of our expectations, reflecting new license agreements in China and strong chipset shipments. We are forecasting continued growth of global 3G/4G device shipments in calendar year 2017, led by growing demand in emerging regions. We are well positioned to extend our mobile technology leadership and footprint into attractive growth opportunities, accelerated by our recently announced agreement to acquire NXP."
- After hours – Presently unchanged.
- 3G/4G device shipment estimates
- Equity compensation plan
- Selected financial data
- Supplemental results
- Prior quarters overview
- Conference call
- Press release
Wed, Nov. 2, 4:08 PM
Tue, Nov. 1, 5:35 PM
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Mon, Oct. 31, 9:36 AM
- Previously maintained Neutral rating and $55 price target (current price $68.40).
- Romit Shah likes scale and expansion of total addressable market resulting from NXP Semiconductors deal and highlights projected 30% accretion in earnings, to $6 per share, for 2018.
- Further considers Qualcomm not fully owned among institutional investors in comparison to peers (Applied Materials, Broadcom, Texas Instruments cited) and despite outperformance on the year so far, notes shares have performed below-sector and below-market for extended periods of time.
- Qualcomm (NASDAQ:QCOM) +0.80%, NXP Semiconductors (NASDAQ:NXPI) +0.06% at the open.
Fri, Oct. 28, 6:44 PM
- With the help of a very big deal -- AT&T's (NYSE:T) $85B offer for Time Warner (TWX -0.9%) -- companies have set a monthly record for merger and acquisition activity.
- Firms have agreed to M&A valued at more than $251B this month, Dealogic says. That surpasses a previous record month, July 2015, at $240B. The tech sector (signified most recently by Qualcomm's (QCOM -2.4%) $39B deal for NXP Semiconductors (NXPI +0.7%)) has accounted for a fourth of U.S.-targeted deals and 19% by value, just ahead of healthcare.
- Last week was especially hot, with $177B in activity (itself a record for an M&A week).
Thu, Oct. 27, 6:52 AM
- Qualcomm (NASDAQ:QCOM) has agreed to buy NXP Semiconductors (NASDAQ:NXPI) in a deal that values the chip maker at $110 a share, or $47B, including debt, as it seeks to expand the reach of its chips from phones to cars.
- The combined company is expected to have annual revenues of more than $30B, serviceable addressable markets of $138B in 2020 and leadership positions across mobile, automotive, IoT, security, RF and networking.
- QCOM +2.1%; NXPI +3.2% premarket