Category Archives: oud

Apple Chip Suppliers Broadcom, NXP, Skyworks Up On iPhone 7 Hopes

Apple ( AAPL ) chip suppliers Skyworks Solutions ( SWKS ), Cirrus Logic ( CRUS ) and Qorvo ( QRVO ) stocks lifted Monday on a bullish RBC Capital report that sees fellow chipmaker Broadcom ( AVGO ) reaching $16 earnings per share on merger synergies and iPhone 7 content gains. But Broadcom’s Q2 wireless sales will likely dip $40 million to $50 million on slowing current-generation iPhone sales, RBC Capital analyst Amit Daryanani wrote in the research report. He rates Broadcom stock his top semiconductor pick, with a 180 price target. Over the next two years, Broadcom stock could reach 200, Daryanani says. In afternoon trading on the stock market today , Broadcom stock was up a fraction, trailing shares of InvenSense ( INVN ) and Qorvo, which jumped 3.4% and 3.3%, respectively. Cirrus Logic, Skyworks and Taiwan Semiconductor Manufacturing ( TSM ) stocks were up 3, 2.5% and 1.5%, respectively. NXP Semiconductors ( NXPI ) stock was up nearly 1.5%, while  Integrated Device Technology ( IDTI ) was up a fraction. Broadcom is slated to report its Q2 earnings after the close June 2. Daryanani expects Broadcom to miss consensus expectations for $3.55 billion in sales on petering Apple iPhone sales, despite stronger-than-expected Samsung Galaxy S7 sales. Apple comprises 15% of Broadcom’s sales, Daryanani estimates, with Samsung in the high single digits. Apple’s June-quarter guidance implies 40 million iPhones shipped vs. consensus views for 44 million. Near term, Apple will pose a headwind until the iPhone 7 , expected to be released in September, ramps up. “To that end, Broadcom’s FBAR (film bulk acoustic resonator) business could see double-digit year-over-year growth driven by content gains,” Daryanani wrote. Wi-Fi combo chips could also see modest average sales prices tailwinds. Earlier, Broadcom saw wireless account for 23% of sales. Daryanani expects that segment to grow 37% quarter over quarter as the company’s recent merger is factored. The former Avago Technologies bought Broadcom for $37 million in February, but kept the Broadcom name. Storage sales will likely become “incrementally worse,” Daryanani wrote. Western Digital ( WDC ) and Seagate Technologies ‘ ( STX ) recent earnings suggest a $100 million hard-disk drive total addressable market in March and a $95 million TAM in June, down 20% and 15% vs. last year. Enterprise storage is expected to account for 17% of Broadcom’s Q2 sales. Daryanani sees the segment declining 14% vs. Q1, vs. 6% sequential growth in the prior quarter.

Verizon, Yahoo Both At JPMorgan Event — But It’s Not A Date, Yet

Verizon Communications ( VZ ) and Yahoo ( YHOO ) are both slated to appear at the JPMorgan ( JPM ) Technology, Media and Telecom conference in Boston on Tuesday morning, with the phone company still viewed as the front-runner to buy the struggling Web portal. While it’s unlikely either company will comment on any such marriage, either one might comment on their strategy going forward if a deal falls through. Verizon acquired AOL for $4.4 billion last June. Verizon CEO Lowell McAdam is scheduled to give the morning keynote address. Yahoo CFO Ken Goldman is expected to take part in a question-and-answer session at 9:20 a.m. EST. McAdam doesn’t appear on Verizon earnings calls, leaving that chore to CFO Fran Shammo, but he did speak at Verizon’s annual shareholders meeting on May 5. When McAdam appear at venues such as Goldman Sach’s annual Communacopia conference in September, there’s usually news. At Communacopia, McAdam touted Verizon’s plans for 5G wireless services. Verizon CFO Shammo last week said that a six-week strike by nearly 40,000 wireline workers is beginning to impact Verizon’s financials . Yahoo’s Goldman might in general comment on Yahoo’s sale process, as he did at a Morgan Stanley conference in March. At that meeting, Yahoo’s Goldman defended the Internet pioneer’s strategy. Yahoo recently added four new independent directors to its board under pressure by activist investor Starboard Value. One question is whether Starboard will still push for a sale if reports prove accurate that bids are coming in lower than expected. The Wall Street Journal reported last week that Verizon or private equity firms might offer as little as $2 billion to $3 billion  for Yahoo, when analysts had been estimating bids in the$4 billion to $8 billion range. CNBC’s David Faber on Friday, in a tweet, declared that report “completely wrong.” Berkshire Hathaway ( BRKA ) Chairman Warren Buffet , a noted investor who generally stays away from tech companies, might back a group led by Quicken Loans founder Dan Gilbert, if it makes a bid. Yahoo stock was up 1% in early afternoon trading in the stock market today , near 37, while Verizon stock was down nearly 1%.

Does iPhone 7 Production Ramp Mark True Turnaround In Apple Stock?

Apple ( AAPL ) is jumping in heavy volume in the stock market today as reports signal the consumer tech giant’s iPhone production is on the rise. Taiwan’s Economic Daily said Apple told its iPhone 7 suppliers to produce 72 million to 78 million units this year, many more than the 65 million units Wall Street has projected. That production target is also the highest in about two years. The iPhone 7 is due out in September and could give Apple the boost it needs after the company reported its first-ever quarterly decline in iPhone sales last month. Shares are up 1.8% in heavy volume, hitting their highest level in nearly a month. But the stock still has a lot of recovering to do after gapping down on its latest quarterly report, as it’s down about 27% from its 52-week high. Chip Suppliers Get A Boost Meanwhile, Apple chip suppliers Taiwan Semiconductor ( TSM ), Broadcom ( AVGO ), Qorvo ( QRVO ) and Skyworks Solutions ( SWKS ) are also getting a boost from the report. Taiwan Semiconductor gapped up 2.2% in quick turnover, but it’s hitting resistance at its 50-day line. Shares are trading 7% below their March high and a flat-base buy point of 26.72. Broadcom is climbing 1.6% in above-average volume, but it’s also hitting resistance at the 50-day line. The stock is 6% below its April peak and a potential buy point. Qorvo is rising 3% in big volume after having retaken its 50-day and 200-day moving averages in Friday’s session. The stock is nearing a cup-with-handle buy point of 52.05, but it’s trading 42% below its high reached last June. Skyworks is gapping up 2.9% in fast trade, but it’s still 40% below its June high.