Broadcom's Hock Tan intends to take Qualcomm's licensing business and "throw it to the wolves" if he gets his hands on the company, speculates Bernstein chip analyst Stacy Rasgon, trading rich royalty dollars for greater chip sales, based on his conversations with Broadcom and with investors. That could mean an ugly proxy fight is coming, he speculates.
Investors underestimate Intel's ability to compete in the growing market for artificial intelligence chips, argues Deepak Sitaraman of Daiwa Securities, as he starts coverage of the stock with a Buy rating. They're second only to Nvidia at the moment, and show much promise, he believes, as data center and automative markets look set to gobble up A.I. chips.
Applied Materials shares were down slightly in after-hours trading, even though the company beat quarterly expectations and forecast this quarter's results higher as well.
Apple, Qualcomm's biggest customer, is engaged in litigation with the chip maker, and that acrimonious relationship might be just the thing to help Broadcom CEO Hock Tan, if he can convince regulators his bid for Qualcomm would resolve the two companies' disputes, according to a report from Cowen & Co.'s Carl Ackerman.
Advanced Micro Devices, Xilinx and Cavium all had impressive displays of their technology for high-performance computing at a trade show in Boulder, Colorado, according to chip analyst Hans Mosesmann of Rosenblatt.
Broadcom will likely go hostile with its offer to buy Qualcomm, after the latter rejected a deal on Monday, opines Amit Daryanani of RBC Capital. He thinks Qualcomm shareholders might benefit from a deal, as the "status quo is untenable" under Qualcomm leadership.
Shares of chip equipment maker Lam Research rose in late trading after the company said it replenished its fund for buying back shares to the tune of $2 billion, and raised its dividend by 11%.
Shares of fiber-optic component supplier Macom dropped 13% in late trading, after the company's forecast for quarterly revenue missed by a mile. The CEO blamed a continued stall in network construction in China, but he said this quarter marks the lowest point, and things will turn around next year.
Apple is still struggling with "yields" of its 3-D sensing function in the iPhone X, claims Mizuho's Abhey Lamba, which could last into the new year, he opines.
Broadcom has "a lot of leverage," writes Romit Shah of Instinet, in its bid to buy Qualcomm, a bid the latter yesterday rejected. He sees Broadcom perhaps taking next steps such as nominating people to Qualcomm's board of directors, or starting a public offer for shareholders to tender their shares.
Nvidia's CEO Jensen Huang, along with CFO Colette Kress, impressed analysts yesterday at the Supercomputer Conference in Boulder, Colorado, with a closed-door session discussing the company's outlook for its GPU chips, and providing tantalizing tidbits about technology innovation to come.
Intel has a lot of good things to look forward to in 2018, according to Barclays chip analyst Blayne Curtis, including less competition from AMD, better control of its spending, 10-nanometer chips, and good prospects in artificial intelligence computing and autonomous driving.
AMD could suffer as sales of its GPUs are hit by a 50% decline the market demand for crypto currency "mining" chips in 2018, according to a piece by Morgan Stanley chip analyst Joseph Moore.
Broadcom is likely to bid higher for Qualcomm after the latter this morning rejected its unsolicited takeover offer at $70 per share, write Bernstein and Canaccord analysts. It's also possible the deal could turn "fully hostile" on Broadcom's part, speculates Bernstein analyst Stacy Rasgon.
Broadcom's CEO, Hock Tan, responding to Qualcomm's rejection of his takeover offer, said his company's committed to a deal, and that customers and shareholders of Qualcomm want the two companies to discuss a deal.
Nvidia has done far better in the data center than BMO Capital analyst Ambrish Srivastava thought, and he upgrades the stock to the equivalent of a Hold, conceding artificial intelligence field is a "blue sky" for the company's GPU chips.
Qualcomm's board of directors rejected Broadcom's $70-per-share takeover offer, saying it "significantly undervalues" Qualcomm's lead in mobile technology and its other assets.
Nvidia stock rose 1.6%, in late trading, after its quarterly results crushed analysts' expectations, and it offered a better-than-expected outlook for this quarter. The company raised its dividend and said it would give the same capital returns in dividends and buybacks next year.
Nvdia could produce a big revenue surprise Thursday, but don't expect much from the stock.
Advanced Micro Devices's promise of one more semi-custom deal is finally confirmed with the company clinching a deal with Intel to build a part to accelerate graphics in PCs. Is it also a swipe at Intel competitor Nvidia?