Tag Archives: avgo

Tesla Stock Falls As Citron Shorts; IBD 50 Car Chips Gain

Tesla Motors ( TSLA ) stock wiped out an early gain Tuesday to close down almost 3% as short-selling outfit Citron Research panned the electric-car maker, ahead of the planned March 31 introduction of its mass-market Model 3. Meanwhile, chipmakers on the IBD 50 list that work in the connected cars field gained. “Citron shorting $TSLA,” Citron said in an afternoon Twitter ( TWTR ) tweet. “Supply AND demand problems should take down to $100 by years end. News flow all around does not look good for stock.” Citron shorting $TSLA Supply AND demand problems should take down to $100 by years end. News flow all around does not look good for stock — Citron Research (@CitronResearch) March 1, 2016 Tesla stock had been heading up to meet its 50-day line this week, just about touching it before the Citron report, but the electric-car maker holds a low IBD Composite Rating of 22 out of a possible 99. Meanwhile, on Tuesday, Tesla tweeted about how the MIT Technology Review has now ranked its Autopilot self-driving system among the top 10 Breakthrough Technologies of 2016, along with immune engineering and genetic editing of plants. Tesla Autopilot named an MIT @techreview Top 10 Breakthrough Technologies 2016 https://t.co/u3C9gJA0Ba — Tesla Motors (@TeslaMotors) March 1, 2016 Tesla has moved forward with autonomous-car technology, but partner Mobileye ( MBLY ) got hit in December after Citron called the camera-based car safety technology provider its 2016 “short of the year.” Car Chipmakers Go North Mobileye stock closed up 2.2% Tuesday but remained nearly 50% off its August all-time high. Two chipmakers that work in connected cars and self-driving cars on the IBD 50 list of leading growth stocks rose in the stock market today : Nvidia ( NVDA ), which is also a Tesla partner, and Broadcom ( AVGO ). Both companies serve a variety of fields and are Apple ( AAPL ) suppliers. Automakers talked up some of the technology in car debuts at this week’s Geneva International Motor Show — such as Daimler ( DDAIF ) with a Mercedes-Benz E-Class that can brake and park itself. Tesla’s also there, showing off its Model X crossover SUV. Nvidia, which counts Tesla and Mercedes among more than 50 carmaker partners, surged 4.4% Tuesday. Broadcom gained 3.3%, ahead of its Thursday afternoon earnings report. Broadcom stock has been consolidating and is about 8% under a buy point, while Nvidia is about 4% away and has just formed a cup base. Mobileye gets a 62 Composite Rating from IBD. Nvidia gets a best-possible 99 and Broadcom a 98. Other chipmakers also working in the car space rallied Tuesday, too: Qorvo ( QRVO ) by 5.1%, NXP Semiconductors ( NXPI ) by 4.2% and Skyworks Solutions ( SWKS ) 5.9%. Tesla stock closed down 2.9% Tuesday at 186.35. RELATED: Tesla Goes To Geneva Motor Show: What It Means For Model X . Image provided by Shutterstock .

Can Apple Supplier Broadcom Afford Another Shopping Spree?

Apple ( AAPL ) supplier Broadcom ( AVGO ) could follow its $37 billion Avago Technologies merger by shedding $1 billion in assets to launch another M&A charge, says MKM analyst Ian Ing. Ing reiterated his buy rating on Broadcom stock, but cut his price target to 160 from 163, citing wireless seasonality. Broadcom stock rose 1.7% Wednesday and was up a fraction in afternoon trading in the stock market today , near 131. The companies completed their merger on Feb. 1, taking the Broadcom name but keeping the Avago stock ticker. When announced last March, it kicked off a record-busting $100 billion in 2015 chip sector M&A deals. Analysts say the frenzy shows no sign of slowing as organic growth decelerates and costs rise. But the chip sector has been quiet on the M&A front this year. Broadcom will likely sell $500 million in assets to de-lever from its Q1-completed merger, Ing wrote in a research report. “For Broadcom, data center/networking product cycles have become more meaningful,” he wrote. “And the story increasingly revolves around a quick deleverage and return to semiconductor consolidation via accretive deals.” A number of small chipmakers — $2 billion and less market caps — are eyeing Broadcom’s design team and business units, Ing wrote. Although $1 billion would be a fast deleverage, half that is more likely. “We do not expect as significant monetization of Broadcom units as occurred with LSI,” Ing wrote. Avago acquired LSI in May 2014 for $6.6 billion, then sold LSI’s flash unit to Seagate Technology ( STX ) for $450 million and LSI’s networking business to Intel ( INTC ) for $650 million. Post-merger, Broadcom is less exposed to Apple, which is experiencing slowing iPhone sales. In January, a Credit Suisse analyst estimated 24% of the former Avago’s sales stemmed from Apple. The former Broadcom was 14% tied to Apple in 2014. Joined, Broadcom-Avago gets about 8%-9% of its sales from Apple, Ing estimated. Broadcom is slated to report fiscal Q1 earnings after the close March 3.

Nvidia Retakes Critical Level As Stock Spikes On Earnings

Loading the player… Shares of Tesla Motors ( TSLA ) partner Nvidia ( NVDA ) are surging in the stock market today after the chipmaker reported estimate-beating quarterly results late Wednesday. Sales jumped 12%, and earnings came in flat. Nvidia’s guidance was also well above forecasts. Aside from making graphics chips for Tesla, Nvidia also makes graphics processing units used in the gaming industry. The company is expected to benefit from the launch of the Facebook ( FB )-owned Oculus Rift virtual reality headset, as well as the influx of VR content. The stock popped 8.6% to 30.04 in big volume, retaking its 50-day moving average just a few sessions after finding support at the critical 200-day line. Shares are now about 11% below their all-time high reached at the end of last year and are facing a potential buy point of 34.04. Meanwhile, chipmaker peer Maxlinear ( MXL ) was also able to retake its 50-day line intraday but fell back below that level, closing 1% lower. Volume was below average. Shares are trading about 16% below a buy point at 17.85. And Apple ( AAPL ) supplier Broadcom ( AVGO ), struggling to hold above its 200-day line, fell 2.8% Thursday. The stock has been consolidating since last June. Apple fell 1.9% Thursday, while Facebook dropped 1.6%.