Thu, Apr. 23, 12:20 PM
- While the Nasdaq is up 0.3%, chip stocks are selling off (SOXX -1.8%) after Texas Instruments, Xilinx, and Qualcomm all provided soft calendar Q2 guidance. TI and Xilinx also missed Q1 sales estimates, while Qualcomm beat.
- Decliners include Avago (AVGO -3.7%), Qorvo (QRVO -2.5%), Freescale (FSL -3%), STMicroelectronics (STM -3.6%), Atmel (ATML -2.3%), PMC-Sierra (PMCS -2.5%), Fairchild (FCS -2.2%), Cypress (CY -2.1%), Audience (ADNC -6.6%), IDT (IDTI -4.5%), Vishay (VSH -2.9%), AppliedMicro (AMCC -2.3%), and Cavium (CAVM -4.4%). NXP, ON Semi, Linear, Microchip, and Maxim remain lower after falling AH yesterday.
- With the decliners including many microcontroller, analog/mixed-signal, and telecom equipment chipmakers, TI (TXN -7.3%) might be the biggest culprit: The analog/DSP giant blamed soft telecom equipment and consumer electronics demand for its numbers, with particular weakness in mobile infrastructure (a 2014 strong point) and PCs; auto and industrial demand was healthier.
- On its CC (transcript), TI attributed the mobile weakness to delayed carrier capacity upgrades. This morning, mobile infrastructure giant Ericsson posted a Q1 miss blamed in part on weak North American 4G spending.
- Likewise, Xilinx (XLNX -1.3%), which has strong 4G infrastructure exposure, stated on its CC (transcript) wireless sales were weaker than expected due to "continued softness in North America and a weakening in China LTE business." Wired infrastructure sales were in-line, and other markets outperformed.
- Qualcomm largely blamed its guidance on the iPhone 6's share gains and a loss of chip share at Samsung, rather than industry demand issues. Altera, Freescale, Maxim, Microsemi, and Synaptics report after the close.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- 8 days ago: Chip stocks rally following Intel/Linear's earnings
Wed, Mar. 25, 12:03 PM
- Chip stocks are particularly hard-hit (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
- AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
- Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
- Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
- TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mon, Feb. 2, 5:47 PM
- IDT (NASDAQ:IDTI) has guided on its FQ3 CC for FQ4 revenue of $154M-$162M, well above a $141.9M consensus. Consumer, computing, and telecom chip sales are respectively expected to rise 8%, 6%, and 3% during the seasonally weak quarter.
- CEO Greg Waters: "We have become the clear leader in the latest generation of DDR4 memory interface, and our [Serial RapidIO] business is benefiting from the continued deployment of 4G LTE base stations on a global basis." He asserts IDT gained share "at key customers across all of our key business lines" in FQ3. No "meaningful contribution" was provided by IDT's wireless charging IC business, which is expected to ramp in 2015.
- Gross margin was 61.5%, up from 61.2% in FQ2 and down from 62.4% a year ago. R&D spend rose by $400K Y/Y to $29.7M, and SG&A spend by $2.8M to $23.9M.
- Shares are up to $19.92 in AH trading. The 52-week high is $20.41.
- FQ3 results, PR
Mon, Feb. 2, 5:35 PM
Wed, Jan. 7, 6:11 PM
- Clobbered yesterday amid wireless charging-related concerns, IDT (NASDAQ:IDTI) closed up 5.9% today after Stephens and Craig-Hallum came to the company's defense. The former hiked its target by $6 to $25.
- Both Stephens and CH argue concerns about the inclusion (per Dougherty) of ON Semi (NASDAQ:ONNN) wireless charging ICs in a Qualcomm reference design - IDT has been a Qualcomm partner since 2012 - are overblown. Stephens' Harsh Kumar: "We fully expected the inclusion of other vendors such as ON Semi. It doesn't mean that other vendors are kicked out."
- CH asserts the ON design has been available for months, and has gained little traction. ON rose fractionally yesterday and 1.6% today.
Tue, Jan. 6, 11:06 AM
- Two of the standards bodies battling for the future of wireless charging - A4WP/Rezence and PMA - have announced at CES they're burying the hatchet and plan to form a single entity that supports each group's charging technology.
- A third group, the Wireless Power Consortium (Qi), remains out of the picture, though talks to add it to the alliance are believed to be in the cards. PMA and Qi, which have made the most real-world progress to date, can only support the charging of a single device at a time. Rezence solutions could potentially recharge multiple devices at once.
- Starbucks recently began a rollout of PMA-based wireless chargers. Meanwhile, a number of Android and Windows Phones support Qi.
- IDT (NASDAQ:IDTI), which has developed wireless power transmitter and receiver ICs for all three standards, has sold off hard; a cautious Dougherty note on CES developments is contributing.
- Energous (NASDAQ:WATT), which is working on a proprietary charging solution (still in development stage) that doesn't require mats, is also off. Energous joined PMA last month as the chair of a new Uncoupled Power Working Group.
- IDT rolled out new Qi and PMA transmitter ICs in November, including a dual-mode solution. The company says it's "working cooperatively with prominent industry players" to create Rezence products.
- Update: Dougherty believes ON Semi's wireless charging ICs have been included in a Qualcomm reference design, and views this as a negative for IDT.
Oct. 28, 2014, 12:46 PM
Oct. 27, 2014, 6:58 PM
Oct. 10, 2014, 1:42 PM
- Following Microchip's warning and related prediction of a chip industry correction, Goldman's James Covello thinks there's 15%-20% downside in industry names.
- Covello, who lowered his industry view to Cautious in August: "The last time Microchip negatively preannounced was October 15, 2012 (3% sales miss). Between October 1 and December 31, Street 2013 sales estimates for the Semi group were revised down 6% on average."
- He adds several datapoints suggest the industry has been overheating. Among them: Semi revenue growth has outpaced end-market growth, and supply chain inventory dollars rose 3% more than their 3-year average in Q2.
- "Nobody will be spared," predicts Hedgeye's Craig Berger. Benchmark's Gary Mobley observes 5 of the 6 chip stocks to have made Q3 pre-announcements have thus done so to the downside.
- Worth noting: Mobile chipmaker Silicon Motion (SIMO -8.9%) is the one chipmaker to have positively pre-announced. It might not be a coincidence that Microchip has relatively low mobile exposure.
- Observing U.S. macro data remains positive even as China and Europe soften, Longbow's JoAnne Feeney remains bullish long-term on select names. However, she has cut her short-term rating on Linear (LLTC -3.8%) to Sell, and removed IDT (IDTI -7.1%) from her trading long list.
- In addition to the names previously mentioned, the following chip stocks are seeing steep losses: AMD -5.1%. FCS -13.6%. NXPI -11.2%. CODE -11%. LSCC -9.6%. SIMG -8.1%. IPHI -7.7%. ISIL -9.5%. CY -6.9%. RMBS -7.1%. QUIK -5.7%. SQNS -5.1%. IMOS -6.5%.
- Foundries and contract manufacturers are also selling off: TSM -3.9%. UMC -2%. SMI -2.4%. SANM -11.7%. FLEX -6.8%. JBL -4%.
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Oct. 10, 2014, 9:59 AM
- Microchip's (MCHP -12.5%) calendar Q3 warning, which was accompanied by a declaration that it believes "another industry correction has begun and that this correction will be seen more broadly across the industry in the near future," is taking a heavy toll on chip stocks (SOXX -5.5%).
- Intel (INTC -4.2%) and many other chipmakers have joined the several firms that sold off AH yesterday in going in the same direction as Microchip: MU -5.8%. FSL -8.5%. BRCM -3.6%. SWKS -7.5%. RFMD -6.2%. XLNX -4.9%. MXIM -5%. AMBA -5.5%. IDTI -6.7%. CAVM -7.4%. AVGO -10.2%. SMTC -4.3%. SYNA -4.1%. POWI -6.9%.
- Chip equipment makers are also getting hit: AMAT -3.5%. KLAC -3.3%. LRCX -2.3%. UTEK -2.5%. KLIC -2%.
- As Microchip noted in yesterday's warning, the company's very diversified customer base, together with its recognition of distributor revenue on a customer sell-through basis rather than a distributor sell-in basis, often allow it to see industry changes before peers.
- The microcontroller vendor added its warning was driven by a September decline in sales to Chinese clients, and observed it has typically "returned to sequential revenue growth after two quarters" during past downturns.
- Chip stocks have had a good run over the last 12 months, aided by healthy mobile demand and the industry's consolidation wave.
Aug. 4, 2014, 10:00 AM
- OTR Global reports GT Advanced (GTAT +0.4%) will most likely provide sapphire cover glass for the iWatch, and that IDT (IDTI +0.9%) will most likely provide wireless charging ICs.
- GT's win is believed to be worth $4.50/watch. There have been varying reports (previous) on whether the company is supplying sapphire glass for the iWatch to go with its (widely reported) supply work for the iPhone 6.
- GT posts its Q2 report this afternoon. Last week, IDT cited growing wireless charging IC sales as one of several factors behind its FQ1 beat; the chipmaker formed a wireless charging alliance with Intel in 2012.
Jul. 29, 2014, 12:47 PM
Jul. 29, 2014, 11:44 AM
- IDT's (NASDAQ:IDTI) RapidIO, timing IC, and RF component sales are benefiting from the global 4G infrastructure buildout, the company states while discussing its FQ1 numbers. Ericsson and Nokia have already reported seeing strong Q2 demand for 4G base stations.
- Meanwhile, IDT's memory interface IC sales are benefiting from the transition to DDR4 from DDR3, and wireless power IC demand is boosting consumer sales. An IDT wireless power receiver has been designed into LG's flagship G3 phone.
- FQ1 gross margin was 61.9%, up from 61.1% in FQ4 and 58.6% a year ago.
- IDT guided on its CC (transcript) for FQ2 revenue of $130M-$136M and EPS of $0.17-$0.19, in-line with a consensus of $132.6M and $0.18. GM is expected to come in at 61.2% (+/- 0.5%).
Jul. 28, 2014, 4:15 PM| Comment!
Jul. 23, 2014, 12:25 PM
- Among the year's best tech performers, chip stocks are selling off (SOXX -1.8%) on an up day for the Nasdaq following weak numbers from FPGA giant Xilinx (XLNX -14.5%).
- Xilinx missed FQ1 revenue estimates by over $18M, and also guided for FQ2 revenue to be well below consensus. The company blamed the FQ1 shortfall on soft defense and wireless sales. BMO and BofA/Merrill have downgraded Xilinx; the former thinks Xilinx's 28nm share might be peaking.
- Xilinx stated on its CC (transcript) the wireless weakness was mostly due to soft 28nm chip sales to Chinese 4G base station vendors; Chinese 4G rollouts have long been viewed as a catalyst for both Xilinx and Altera (ALTR -4.7%). Aerospace/defense sales were hurt by program timing issues.
- Meanwhile, switch/router vendor Juniper offered light Q3 guidance to go with a Q2 beat. The company noted on its CC (transcript) "market dynamics" for U.S. carriers, including M&A activity, are affecting project rollouts.
- Also: Analog/mixed-signal IC vendor Linear (LLTC -4.1%) is selling off in spite of beating FQ4 estimates and guiding in-line (8%-11% Y/Y FQ1 rev. growth vs. 9.1% consensus).
- Notable decliners: FSL -5.3%. IDTI -6.4%. EZCH -3.3%. PMCS -4.3%. LSCC -6.8%. CAVM -4.7%. SMTC -4.1%. ATML -3.2%. TQNT -3.1%. RFMD -2.9%. IRF -2.9%.
- Qualcomm, NXP, TriQuint, and Cirrus Logic report after the bell.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Jun. 27, 2014, 6:53 PM
- Joe Najarian has given IDT (IDTI) a favorable mention on CNBC's Fast Money. (video)
- Najarian highlighted strong buying activity in November $15 IDT calls. Today's volume (4,509) was over 6x the open interest (680) going into today.
- Shares have made new 52-week highs AH. Nomura recently named IDT one of the "sub-scale" chipmakers it thinks could be acquired as the semi industry continues to consolidate.
IDTI vs. ETF Alternatives
Integrated Device Technology Inc designs, develops, manufactures and markets low-power, high-performance mixed signal semiconductor solutions for the advanced communications, computing and consumer industries.
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