Tag Archives: simo

Is Apple Supplier NXP Semi Looking To Home In On Auto Market?

Apple ( AAPL ) chip supplier NXP Semiconductors ( NXPI ) could be looking to further focus on the automotive market, as it considers a $2 billion sale of its standard products unit, according to reports. NXP Semi shares jumped as much as 3.8% Friday morning in quick turnover to retake their 200-day moving average. But the stock pared its gains to closed with a 1.8% rise and fell back below the 200-day line. The standard products unit — which consists of transistors, diodes and other standard-chip products — accounted for 20% of NXP Semi’s 2015 sales, but the segment’s revenue fell 3% year-over-year, with an 18% drop in Q4. Chinese firms, including Beijing-based investment firm JAC Capital, are interested in a deal with NXP for the unit, sources told Bloomberg. The move could signal an effort by NXP to further focus on the automotive market, and even products it supplies to smartphone makers, including Apple. NXP became the largest chip supplier to the automotive industry with the completion of its $12 billion merger with smaller peer Freescale Semiconductor in December. At that time, the company said it had plans to lead the auto industry in terms of infotainment, vehicle networking, body, safety and secure access. NXP’s automotive segment revenue jumped 17% last year, boosted by the acquisition, to $1.34 billion. That represents 22% of NXP’s total sales for 2015. NXP, which has an IBD Composite Rating of 81 out of 99, is set to report Q1 earnings on April 25. Analysts expect the bottom line to drop 19% to $1.09 a share, while the top line jumps 51% to $2.21 billion. As NXP stock is trading 27% below its 52-week high, top-rated peer Nvidia ( NVDA ) is sitting just 2% below its recent high. The Tesla Motors ( TSLA ) supplier broke out of a cup-with-handle base several weeks ago and is now extended from buy range. Monolithic Power Systems ( MPWR ) is trading 8% below its high as it works on a base, while Silicon Motion Tech ( SIMO ) is nearing profit-taking zone after a breakout last month. Nvidia closed up 0.65%, Monolithic Power added 0.3%, and Silicon Motion climbed 2.4% Friday. Apple added 0.1%, and Tesla fell 2.8%.

Silicon Motion Jumps As Preliminary Q1 Revenue Exceeds Estimates

Silicon Motion Technology ( SIMO ) stock hit a record high Thursday after the company said first-quarter revenue would come in higher than expected. The Taiwan-based provider of flash-chip storage devices used in consumer products said revenue is expected to be 14% to 15% higher than the previous quarter. It’s prior guidance was in the range of a 2.5% decrease to a 2.5% increase. The consensus estimate, prior to the improved guidance, is for Silicon Motion to report revenue of $99 million, up 1% sequentially and up 23% year over year, which would be the eighth quarter in a row of double-digit gains. The consensus on earnings per share is 56 cents, up 17%, according to analysts polled by Thomson Reuters. Silicon Motion also said its gross profit margin is expected to be in the upper half of its original guidance range of 49% to 51%. Silicon Motion stock was up 4%, near 39.50, in afternoon trading on the stock market today . Shares rose as much as 6.4% earlier, hitting an all-time high of 40.27. Silicon Motion has an IBD Composite Rating of 99, the highest possible, and broke out of a cup-with-handle base at 34.08 last month. That leaves the stock 16% extended. The company is scheduled to release full Q1 earnings after the market close April 27. The majority of Silicon Motion products are integrated in consumer electronic devices. A significant portion of revenue is from customers that use the products in removable and embedded solid state storage solutions for smartphones, tablets, digital cameras, notebooks and desktop PCs. Its customers include Samsung and SK Hynix. Competitors in the mobile storage market include Marvell Technology ( MRVL ). On Tuesday, husband and wife co-founders Sehat Sutardja and Weili Dai resigned under pressure as CEO and president, as the company in March completed a review by its audit committee that found sales staff was under significant pressure from management to meet revenue goals. The company has delayed the filing of its 10-K statement, and Nasdaq has put the company on notice of possible delisting. Marvell stock jumped 13% on Tuesday on that news, but was down a fraction, near 10.80, Thursday afternoon.

Two Apple Suppliers Among 3 Top Overseas Chipmakers

One doesn’t need to be a globetrotter to find winning foreign companies — many of them trade in the U.S. market. Today’s IBD International Leaders screen of top rated global stocks includes three highly rated chipmakers. Two Apple suppliers make the list — Avago Technologies (AVGO) and ARM Holdings (ARMH) — as well as fabless semiconductor company Silicon Motion Technology (SIMO). All three are members of IBD’s Electronic-Semiconductor Fabless