Thu, Jul. 23, 9:15 AM
Thu, Jul. 23, 1:58 AM
Wed, Jul. 22, 11:11 AM
- The Philadelphia Semi Index (SOXX -3.2%) has fallen to its lowest levels since February after Apple, ARM, and Linear Technology posted their calendar Q2 reports yesterday afternoon.
- Apple (down 4.8%) beat estimates, but offered soft guidance and reported slightly below-consensus iPhone sales. ARM (down 3.8%) reported roughly in-line Q2 results and a 26% Y/Y increase in ARM-based chip shipments, while stating it expects 2015 results to be in-line with expectations.
- Linear (down 7.8%) missed FQ4 estimates and provided weak FQ1 guidance. Notably, the analog/mixed-signal chipmaker added it saw bookings slow "considerably" towards the end of Q2, with industrial and PC demand particularly weak. Bookings have improved in July, but Linear is still "preparing for a difficult [Q3]." The company expresses optimism the downturn will be short.
- Apple suppliers are seeing big losses (previous). As are Linear peers Texas Instruments (TXN -3.7%), ON Semi (ON -5.1%), Maxim (MXIM -3.5%), IDT (IDTI -6.5%, Apple Watch supplier), InPhi (IPHI -4%), Exar (EXAR -4.2%), and Analog Devices (downgraded by Drexel Hamilton).
- Other decliners include Micron (MU -4.2%, also an Apple supplier), Synaptics (SYNA -6.4%, ditto), STMicroelectronics (STM -6.2%, downgraded by Citi), Freescale (FSL -4.8%, following merger partner/Apple supplier NXP lower), Microchip (MCHP -4.6%), Cypress (CY -4.3%), Lattice (LSCC -3.9%), and Silicon Motion (SIMO -4.4%).
- Qualcomm, TI, Cirrus Logic, SanDisk, and Xilinx report this afternoon.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mon, Jul. 13, 10:35 AM
- Believing Q2 and Q3 estimates are at risk, JPMorgan has downgraded STMicroelectronics (NYSE:STM) to Underweight ahead of its July 23 Q2 report, and cut its target by €0.50 to €6.50 ($7.17).
- The firm cites weak PC sales and disappointing smartphone demand. It also thinks a potential sale or closure of STMicro's money-losing Digital Product Group (DPG - STMicro has said it's exploring options) is priced in.
- Shares now trade for just 0.9x a 2016 sales consensus of $7.63B.
Fri, Jul. 10, 11:14 AM
- The Euro Stoxx 50 index is up 2.8% after Greece submitted a bailout proposal that met a number of the demands set by creditors for austerity measures and legal reforms. The Nasdaq is up 1.3%, and the S&P 500 1.1%.
- In addition to Nokia and Alcatel-Lucent (previously covered), major European tech gainers include SAP (SAP +3.7%), Ericsson (ERIC +3.6%), ASML (ASML +4%), and STMicroelectronics (STM +4.7%).
- Some SAP news: 1) CEO Bill McDermott has been discharged from a hospital after suffering an accident at his relatives' home. 2) A U.S. federal appeals court has upheld the cancellation of a patent owned by private Versata that led to a $391M infringement ruling against SAP.
- ASML reports on July 15, Ericsson on July 17, SAP on July 21, and STMicro on July 23.
Thu, Jul. 2, 10:58 AM| 2 Comments
Mon, Jun. 22, 9:08 AM
- Barclays has upgraded STMicroelectronics (NYSE:STM) to Equal Weight. Shares have risen to $8.30 premarket.
- The European chipmaker has underperformed the semi industry by a large margin over the last years, largely moving sideways as other chip stocks from both a tech rally and an industry consolidation wave. STMicro trades for just 0.85x a 2016 sales consensus of $7.63B, after backing out $512M in net cash.
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
Tue, May 12, 10:05 AM
- STMicroelectronics (NYSE:STM) has used its 2015 investor day to state it's exploring options to cut losses at its Digital Product Group (DPG), a division that makes set-top ICs, image sensors, and embedded processors (among other products). "This problem needs to be fixed and we will fix it," says CEO Carlo Bozotti.
- DPG's revenue fell 27% Y/Y in Q1 to $207M (12% of total revenue); STM blamed a drop legacy sales related to the shuttered ST-Ericsson JV, along with declining image sensor and low-end set-top IC sales. OmniVision and Sony provide tough competition in the image sensor; Broadcom is a fierce rival in the set-top IC space.
- DPG's performance led STMicro's broader Embedded Processing Solutions (EPS) segment (34% of total revenue, also covers microcontrollers and memory chips) to report a Q1 op. loss of $64M (improved from -$82M a year earlier). STMicro stated on its Q1 CC (transcript) it's working to cut costs within EPS, primarily via DPG.
- The European chipmaker has also guided today for Q2 revenue and gross margin to hit the midpoints of the guidance ranges set in its April 30 Q1 report. Shares are recovering a portion of their big post-earnings losses.
Tue, May 12, 9:16 AM
Sat, May 2, 3:42 PM
- iPhone/iPad combo chip supplier Broadcom (NASDAQ:BRCM) is providing a Wi-Fi/Bluetooth/NFC/FM radio combo chip for the Apple Watch (NASDAQ:AAPL), according to an ABI Research teardown of the Watch's S1 chip module. As expected, NXP supplies a complementary NFC controller.
- The teardown also uncovered a 6-axis STMicroelectronics (NYSE:STM) motion sensor (accelerometer/gyproscope). There has been some debate about whether InvenSense (NYSE:INVN) will be a motion sensor supplier for the Watch, as it is for the iPhone 6.
- Analog Devices (NASDAQ:ADI) supplies a touch controller IC. Barclays reported in March ADI had scored multiple design wins to enable Apple's Force Touch pressure-based response feature (supported by the Watch) on future iPhones/iPads.
- IDT (NASDAQ:IDTI) supplies a wireless charging IC. The design win comes after Samsung opted to use a Texas Instruments charging IC within the Galaxy S6; IDC supplies a chip for the S6's charging pad. Dialog Semi (OTC:DLGNF) provides a power management chip.
- SanDisk/Toshiba (NASDAQ:SNDK) supply an 8GB NAND flash chip, and Micron/Elpida (NASDAQ:MU) a 4Gb (512MB) SRAM chip. SRAM typically carries higher ASPs than DRAM for a given amount of capacity (it's also faster).
- In the near-term (and perhaps longer), Watch volumes will likely amount to a small fraction of iPhone volumes - whereas Apple sold 192.7M iPhones in 2014, IDC forecasts 15.9M 2015 Watch shipments, and more bullish estimates are still generally in the ~20M range. However, strong growth is expected over the next several years, and the first-gen Watch serves as a valuable reference win when competing for other smartwatch/wearable designs.
Thu, Apr. 30, 2:57 PM
- In addition to missing Q1 estimates, STMicroelectronics (NYSE:STM) has guided for Q2 revenue to be up 3.5% Q/Q (+/- 3.5%). That implies a revenue midpoint of $1.77B, below a $1.82B consensus.
- Q1 sales were hurt by a 16% Y/Y drop in analog/MEMS revenue to $255M; iPhone 6 share loss to InvenSense was a factor, as was a $15M one-time gain in the year-ago quarter. Automotive chip revenue fell 3% to $434M, and industrial & power discrete revenue (hurt by soft PC sales) 3% to $430M.
- Digital power group (set-top/cable modem chips and legacy ST-Ericsson products) sales fell 27% to $207M (possible share loss to Broadcom). Microcontrollers (MCUs), memory, and secure MCUs were a strong point, rising 8% to $374M; Samsung smartphone design wins for the STM32 flash microcontroller line provided a boost.
- Shares had already already sold off going into to earnings, thanks in part to weak reports from peers. They're down 20% from an April 22 close of $9.94.
- Q1 results, PR
Thu, Apr. 30, 12:45 PM
Thu, Apr. 30, 9:19 AM
Thu, Apr. 30, 1:38 AM
Wed, Apr. 29, 1:26 PM
- European tech firms Nokia (NOK -2.5%), Alcatel-Lucent (ALU -4.4%), ARM (ARMH -2.8%), and STMicroelectronics (STM -2.6%) have sold off following broad declines for continental exchanges.
- The U.K.'s FTSE 100, France's CAC 40, and Germany's Deutsche Borse have respectively fallen 1.2%, 2.6% and 3.2%, and the EURO STOXX 50 index has dropped 2.7%. Over in the U.S., the Nasdaq is down 0.9%, and the S&P 0.7%.
- The selloff has come amid a 1.5% gain for the euro against the dollar, continuing a recent rebound. The euro/dollar exchange rate is back up to 1.11. It has also coincided with sharp increases in European debt yields.
- Nokia reports earnings tomorrow morning, and merger partner Alcatel-Lucent (past deal coverage) on May 7. ARM rallied last week in response to a Q1 revenue beat driven by strong royalty growth.
STM vs. ETF Alternatives
STMicroelectronics NV designs, develops, manufactures and markets semiconductor products used in different microelectronic applications, including automotive products, computer peripherals, telecommunications systems, consumer products, & control systems.
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