Wed, May 27, 3:00 PM
- Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
- A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
- Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
- Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mon, May 18, 2:10 PM
- Many chip stocks are turning in healthy gains amid a 0.7% gain for the Nasdaq after the NY Post reported Altera (up 6.2%) has resumed buyout talks with Intel.
- Also possibly helping: China's big-3 carriers have announced major data tariff cuts. Brean has argued the cuts are a positive for RF chipmakers Skyworks (SWKS +5.7%), Qorvo (QRVO +4.2%), and Avago (AVGO +1.9%); the companies benefit from rising 4G phone sales.
- Aside from the aforementioned companies, today's gainers include Synaptics (SYNA +4.8%), Himax (HIMX +2.3%), and Silicon Motion (SIMO +2.3%), each of whom also has Chinese mobile exposure. Other winners include Atmel (ATML +3.7%), Microsemi (MSCC +2.6%), InPhi (IPHI +2%), Intersil (ISIL +2.5%), Silicon Labs (SLAB +2.5%), IDT (IDTI +2.3%), and MaxLinear (MXL +3.5%).
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Thu, Apr. 30, 3:35 PM
- With the Nasdaq down 1.8% amid an earnings season market selloff, major decliners are easily outnumbering major gainers.
- Notable decliners include action camera leader GoPro (GPRO -5.4%), privileged account protection software vendor CyberArk (CYBR -5.2%), ultracapacitor maker Maxwell (MXWL -5.1%), storage hardware vendor Quantum (QTM -5%), NAND flash controller/4G transceiver maker Silicon Motion (SIMO -5.6%), online video ad platform Tremor Video (TRMR -7%), and specialty foundry TowerJazz (TSEM -6.2%).
- GoPro is returning a chunk of yesterday's big post-earnings gains. Maxwell is down 20% since posting a Q1 miss and soft Q2 guidance a week ago. Silicon Motion, which initially rallied post-earnings, is now down 4% from where it traded before providing decent guidance to go with Q1 results that were in-line with a pre-announcement.
- Previously covered: Baidu, Yelp, Nokia, STMicroelectronics, Flextronics, Calix, MicroVision, Stratasys, Knowles/Audience, QuickLogic, WiLAN
- Notable gainers: Glu Mobile, ClickSoftware, OmniVision, AVG, Cypress, Neustar
Mon, Apr. 27, 7:03 PM
- Silicon Motion (NASDAQ:SIMO) expects Q2 revenue to be up 5%-10% Q/Q. That implies a range of $84.6M-$88.7M vs. an $85.7M consensus. Full-year revenue is expected to be up 17%-25% Y/Y; consensus is for 22.5% growth.
- Though officially beating consensus, Q1 revenue of $80.6M matched guidance (provided in SIMO's April 8 pre-announcement) for sales to be roughly flat from a Q4 level of $80.5M.
- SIMO: "Our first quarter revenue benefited from strong client SATA 3 SSD controller sales momentum and stable eMMC controller sales. Client SSD controller sales doubled sequentially ... we expect a new major SSD program with our controllers, again for both channel and OEM markets, to begin shipping in the second quarter. Our storage OEM partner began shipping SSDs to three global tier-1 PC OEMs in the first quarter and recently started shipping to two additional OEMs."
- Mobile storage (flash controller) sales rose 41% Y/Y to $63.6M. Mobile communications (4G transceiver and TV IC) sales rose 176% to $15.2M. Gross margin (non-GAAP) was 52% vs. 52.5% in Q4 and 48.6% a year ago. Op. margin was 24.1% vs. 26% in Q4 and 16.7% a year ago. Q2 GM guidance is at 50%-52%; full-year GM guidance is still at 49.5%-51.5%.
- Shares have risen to $31.70 AH. They fell hard on Friday after SIMO announced it's buying Chinese SSD/storage array vendor Shannon Systems and (perhaps more importantly) Northland Securities reported SK Hynix is planning to launch its own UFS 2.0 flash controllers.
Fri, Apr. 24, 5:37 PM
Fri, Apr. 24, 11:37 AM
- Possibly weighing on Silicon Motion (SIMO -7.1%) today: Northland Securities observes memory giant SK Hynix (OTC:HXSCF - reported earnings on Wednesday) plans to launch its own NAND controllers for the new/high-speed UFS 2.0 standard in late 2015 or early 2016
- Northland expects UFS 2.0 (used in Samsung's Galaxy S6 and expected to go into Xiaomi's next-gen flagship) to gain share against the widely-used eMMC standard on the high-end, and thinks Hynix's controllers "will likely impact SIMO's share" at the company. It notes Hynix accounts for ~90% of SIMO's eMMC controller business, or ~35% of total revenue.
- SIMO is working on its own UFS 2.0 controllers, which are expected to ship late this year or early next. Northland: "I do not believe that all of the eMMC business is at risk, but this will not be received well by the Street. SIMO will have this as a headwind until they can show that they will not lose significant share at SK Hynix."
- Earlier: SIMO buying Chinese SSD/storage vendor
Fri, Apr. 24, 9:51 AM
- Silicon Motion (NASDAQ:SIMO) is buying Shannon Systems, a Chinese provider of PCIe flash modules/SSDs and storage arrays, for $57.5M in cash, stock, and earn-out payments. The deal is expected to close by the end of July.
- The purchase represents an attempt to move downmarket by SIMO, currently a major NAND flash controller supplier for SSDs and embedded flash modules. The deal could occasionally put the company into competition with some of its NAND controller clients. However, Shannon's sales efforts have been focused specifically on the Chinese market.
- SIMO asserts Shannon's customers include leading Chinese Internet companies, and notes it was co-founded by Marvell's SSD controller architect. The company is expected to grow sales to $14M-$18M in 2015; SIMO expects the acquisition to be slightly accretive in 2H15 EPS and "more accretive" in 2016.
- Shares have sold off following the announcement, which comes ahead of SIMO's April 27 Q1 report.
Thu, Apr. 16, 3:19 PM
- Today's notable tech gainers include Chinese online gaming/entertainment platform YY (YY +4.5%), Chinese search engine/portal owner Sohu (SOHU +5.4%), U.S. solar installer Vivint (VSLR +4.9%), U.S. solar installer Vivint (VSLR +4.9%), solar power optimizer/inverter maker SolarEdge (SEDG +5%), M2M hardware/software provider I.D. Systems (IDSY +8.9%), DSP core IP provider Ceva (CEVA +7.2%), cloud healthcare software provider Castlight (CSLT +6.1%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO +4.8%). The Nasdaq is nearly flat.
- Notable decliners include local services marketplace Angie's List (ANGI -6.6%), IP licensing firm Acacia (ACTG -4.4%), and gaming system maker IGT (IGT -5.1%).
- Dougherty has launched coverage on I.D. Systems at Buy, and Canaccord has done the same for Ceva. Vivint is one of several solar firms to get an Outperform rating from Avondale Partners. Silicon Motion has surged to fresh 52-week highs, and is up 22% since last week's Q1 pre-announcement.
- Angie's List is giving back some of the big gains seen yesterday after announcing long-time CEO Bill Oesterle plans to retire, and slightly hiking its 2015 adjusted EBITDA guidance. IGT is returning a chunk of the gains seen last week following the closing of the Gtech merger.
- Previously covered: Etsy, AMD, Fairchild, SanDisk, 58.com, Audience, Travelzoo, Sequans, Carbonite, Identiv
Thu, Apr. 9, 1:18 PM
- Silicon Motion's (NASDAQ:SIMO) Wednesday Q1 revenue/gross margin pre-announcement suggests "a few pennies" of upside to B. Riley's $0.40 EPS estimate for the quarter, the firm writes in a bullish note today. Before the announcement, the consensus was at $0.42 (it's now at $0.44).
- B. Riley adds it's "particularly enthused" by SIMO's margin forecast, which suggests momentum for the company's high-margin embedded NAND/SSD controller business remains strong in 2015. NAND flash giant SanDisk issued a Q1/2015 warning on March 26; many think company-specific factors are playing a role.
- SIMO has rallied to new highs, and is now up 16% since the pre-announcement.
Wed, Apr. 8, 9:16 AM
- Silicon Motion (NASDAQ:SIMO) expects Q1 revenue to be roughly flat Q/Q, putting it at the high end of guidance for flat to -5% growth; consensus is for revenue to fall 3% Q/Q to $78.4M.
- Likewise, gross margin is expected to be in a 51%-52% range; guidance was at 50%-52%. GM was at 52.5% in Q4 and 48.6% in Q1 2014.
- Shares have risen to $29.00 premarket, just $1.50 below their 52-week high. Full Q1 results arrive on April 27.
Thu, Mar. 26, 3:19 PM
- Today's notable tech gainers include ultracapacitor maker Maxwell (MXWL +4.6%), SMB Web services firm Web.com (WWWW +3.7%), health site owner WebMD (WBMD +3.7%), and RF chipmaker Anadigics (ANAD +11.3%).
- Notable decliners include NAND flash controller/4G transceiver maker Silicon Motion (SIMO -4%), hybrid storage array vendor Nimble Storage (NMBL -3.8%), local ad services provider Dex Media (DXM -8.5%). The Nasdaq is down 0.2%.
- Maxwell's gains come a day after the company announced an ultracapacitor-based engine start module will be offered for two new Kenworth trucks. Silicon Motion has joined a slew of other chip stocks in selling off for the second day in a row. Nimble is trading near its January lows, while Dex has made fresh 52-week lows.
- Previously covered: Cybersecurity stocks, SolarEdge, Infinera, Accenture, SuperCom, Neustar, Textura, ASML, GoPro, SanDisk, Red Hat
Wed, Mar. 18, 3:05 PM
- Today's notable tech gainers include data protection software vendor Imperva (IMPV +3.5%), supercomputer maker SGI (SGI +5.3%), analog/mixed-signal chipmaker MagnaChip (MX +6.1%), enterprise cloud healthcare software vendor Castlight (CSLT +7.6%), program guide/content protection IP provider Rovi (ROVI +5.8%), cloud contact center software vendor Zendesk (ZEN +5%), and Web site owner Demand Media (DMD +4.6%). The Nasdaq is up 0.8% following Janet Yellen's market-pleasing remarks.
- Notable decliners include Chinese EV maker Kandi (KNDI -3.4%), RF backhaul hardware maker DragonWave (DRWI -7.6%), NAND flash controller/4G RF transceiver maker Silicon Motion (SIMO -3.2%), and online money transfer provider Xoom (XOOM -4.9%).
- Castlight is now up 13% from Friday's close. Rovi, rumored to be weighing strategic options, is two days removed from naming a new sales chief and announcing a licensing deal with Sharp. Kandi has now given back the big Monday gains it saw after posting Q4 results.
- Xoom's losses are likely tied to Facebook's launch of a money transfer service for Messenger users; Facebook isn't charging any fees for now.
- Previously covered: Adobe, Wix, Microsemi/Vitesse, Pandora, 500.com, chip equipment makers, Qihoo, MicroVision, Solar3D, Immersion, Netlist, Qunar, eBay, Avid
Tue, Mar. 10, 3:10 PM
- With the Nasdaq down 1.4%, a long list of tech names are posting major declines. Meanwhile, only a handful of tech companies are up more than 2%.
- Notable decliners include hard drive giant Seagate (STX -4.4%), VoIP service/app provider magicJack (CALL -5.6%), telecom equipment maker Comtech (CMTL -8.8%), flash controller IC vendor Silicon Motion (SIMO -5.2%), Wi-Fi hardware vendor Ruckus (RKUS -8.7%), online ad retargeting platform Criteo (CRTO -5.1%), haptic tech developer Immersion (IMMR -6.4%), supercomputer maker Cray (CRAY -4.6%), online coupon code provider RetailMeNot (SALE -5.5%), and solar plays JinkoSolar (JKS -5.6%), Daqo (DQ -9.8%), and Enphase (ENPH -8.9%).
- Immersion has more than given back the Monday gains it saw after Apple, which relies on a proprietary haptic solution that some think infringes on Immersion's IP, unveiled a 12" retina MacBook with a pressure-sensitive trackpad. Solar stocks are reversing course after rallying in recent weeks with the help of good earnings news and YieldCo hopes.
- Previously covered: Cybersecurity stocks, Canadian Solar/ReneSola, Qihoo, Electronic Arts
- Notable gainers: Nvidia, MicroVision, Energous, Weibo
Mon, Mar. 2, 1:41 PM
- The Philadelphia Semi Index (SOXX +2.4%) has rallied to new highs after NXP announced it's buying microcontroller, network processor, and RF amplifier supplier Freescale for $16.7B after factoring net cash/debt, the biggest deal yet in the chip industry's ongoing consolidation wave. The Nasdaq is up 0.5%.
- Microcontroller makers are among today's big gainers - NXP/Freescale assert they'll be the world's biggest supplier of general-purpose microcontrollers. Standouts include Atmel (ATML +6%) and STMicroelectronics (STM +3.4%), as well as Cypress (CY +3.1%) and merger partner Spansion (CODE +3.2%).
- Other notable gainers include InvenSense (INVN +3.4%), Ambarella (AMBA +6.3%), Audience (ADNC +5.5%), Cirrus Logic (CRUS +3.7%), Cavium (CAVM +4.2%), ON Semi (ONNN +3.5%), Silicon Motion (SIMO +3.5%), InPhi (IPHI +3.8%), and TowerJazz (TSEM +5.5%).
- With the Mobile World Congress as a backdrop, InvenSense has unveiled a 6-axis SoC that pairs a gyroscope and acceleromoter with a motion processor and related software/algorithms; the company claims 25%-50% better power consumption than rival solutions. It has also launched a software library meant to "provide sensor-assisted positioning in places where GNSS alone cannot provide desired accuracy."
- Cavium has announced its OCTEON Fusion-M processor line for mobile base stations. The chips support up to 16 custom CPU cores running at 2GHz., and are declared by Cavium to enable "Smart Radio Heads" that can adapt to network conditions. They begin sampling in Q3.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- Previously: Chip product launches: ARMH, EZCH, BRCM, NXPI, XLNX, IDTI
Fri, Feb. 27, 2:59 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
- Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
- Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
- Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
Mon, Jan. 26, 6:59 PM
- Silicon Motion (NASDAQ:SIMO) expects Q1 revenue to be flat to down 5% Q/Q. That implies a range of $76.5M-$80.5M, mostly above a $76.9M consensus.
- For the whole of 2015, SIMO expects revenue to grow 15%-25%; consensus is for 21.1% growth.
- Q4 gross margin was 52.5%, down from 52.9% in Q3 but up from 48.8% a year ago. GM is expected to fall to 50%-52% in Q1, and be in a 49.5%-51.5% range for the whole of 2015 (down from 2014's 51.8%).
- Embedded storage IC sales rose 70% Y/Y in Q4, driven by eMMC and client SSD controller demand. eMMC now makes up 40% of total revenue. Micron is an SSD controller client, and three tier-1 PC OEMs are using SSDs featuring SIMO's controllers.
- Operating expenses rose 58% Y/Y to $21.4M. SIMO had $195.2M in cash/investments at quarter's end, and no debt.
- Shares are at $25.60 in AH trading.
- Q4 results, PR
SIMO vs. ETF Alternatives
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