59.85 +0.19 (0.32%)
Pre-market: 7:27AM EST
|Bid||59.70 x 1800|
|Ask||59.87 x 4000|
|Day's range||59.08 - 59.84|
|52-week range||42.86 - 60.97|
|Beta (5Y monthly)||0.91|
|PE ratio (TTM)||13.97|
|Earnings date||22 Jan 2020|
|Forward dividend & yield||1.26 (2.11%)|
|Ex-dividend date||04 Nov 2019|
|1y target est||57.19|
Intel (INTC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Zacks Investment Ideas feature highlights: Verizon, Qualcomm, Broadcom, Intel and Skyworks Solutions
(Bloomberg Opinion) -- Huawei Technologies Co. has become very much the U.S.’s whipping boy in the battle to nip China’s technological ascendancy in the bud. President Donald Trump’s administration has slapped sanctions and curbs on the Shenzhen-based company and lobbied allies to do the same. Last month growing resistance against Huawei among lawmakers in Germany’s governing coalition sparked threats of retaliation from the Chinese ambassador. But what’s happening next door in the Netherlands has higher stakes for China. There, Beijing’s envoy this week said there will be negative consequences if the Dutch continue to block the export of a single piece of high-tech manufacturing equipment made by ASML Holding NV. According to Reuters, the U.S. has exerted pressure to prevent the sale to a Chinese firm. But it’s not just any machine. It’s a $150 million state-of-the-art apparatus that could ensure Moore’s Law — which says that processing power doubles every 18 months — continues apace, and the microchips powering our smartphones, computers and networks get ever smaller.Like with Huawei, U.S. Secretary of State Mike Pompeo cited intelligence concerns, though Reuters didn’t specify what they are. The Hague subsequently rescinded an export license it had previously granted for the machine.Any individual nation state cutting Huawei, the world’s largest networking business, out of the supply chain for its 5G networks will of course be a blow to the Chinese firm. But the impact on China as a whole will be limited. Beijing will still be able to build its own next-generation telecommunication networks, and losing a few exports will have a minor effect on the economy as a whole. Huawei’s sales in Europe, the Middle East and Africa totaled $31 billion in 2018.A ban on buying machines from ASML is potentially far more significant, because it will hinder China’s ambitious goals to strengthen its super high-tech manufacturing industry.As far as tech giants go, ASML doesn’t have the global brand cachet of an Apple Inc., Samsung Electronics Co. or Amazon.com Inc. That’s partly because its products are two steps removed from the electronic devices that reside in consumers’ pockets, on their desktops or in their living rooms: ASML builds the machines that make the semiconductors that go into their devices. But it’s one of Europe’s biggest three technology companies, and its top customers include chipmakers Intel Corp., Samsung and Taiwan Semiconductor Manufacturing Co., which is known as TSMC and makes chips for Apple and Huawei alike.The Dutch firm stands out from rivals Nikon Corp. and Canon Inc. because it’s alone in having mastered an approach known as extreme ultraviolet lithography, which is needed for the manufacture of the next generation of chips. Lithography is the process by which circuit patterns are etched onto silicon wafers, and the EUV process will allow the printing of circuits that are more than 10 times smaller than the current standard.QuicktakeHow Chinese Technology Grew to Rival Silicon ValleySo you can see why China would be particularly interested in using ASML’s equipment. Although the country is a hub of electronics manufacturing, much of that is simply assembling iPhones, laptops, smart speakers and the like. The underlying tech is often imported, including some $200 billion-worth of semiconductors each year.Beijing wants to reduce that dependence on imports by investing $150 billion over a decade in an effort to take the lead in technology design and manufacturing. Access to machines made by ASML will be essential to achieving that. By the end of next year, as much as half of TSMC’s revenue will depend at least partly on some EUV processes, according to Bloomberg Intelligence analyst Masahiro Wakasugi. That could be $18 billion worth of chips. TSMC said on Thursday that its deployment of EUV machines was on schedule, advancing at a similar rate to earlier technologies, as it reported earnings that exceeded analyst expectations.While it could take a decade and more than one EUV machine for Chinese firms such as Semiconductor Manufacturing International Corp. to rival that, that is clearly the long-term goal. (SMIC is reportedly the company that placed the order at the heart of the current spat.)Dutch newspaper Het Financieele Dagblad reported last year that ASML was the target of theft by a rival with ties to the Chinese state, though the company later said that any “suggestion that we were somehow victim of a national conspiracy is wrong.” Chief Executive Officer Peter Wennink surely doesn’t want to lose China’s business: It’s ASML’s fastest-growing market.What makes the Dutch move so remarkable is that the U.S. can only unilaterally block sales abroad if components or R&D contributions originating domestically exceed 25% for the relevant product. Here, it seems to have succeeded in leaning on the Dutch government to prevent the sale even though, according to press reports, ASML’s extreme ultraviolet lithography machine doesn’t meet that test. An even greater risk would be that other important suppliers of underlying technology follow suit, whether under U.S. duress or not.(Adds TSMC comment on latest technology in fourth-to-last paragraph.)\--With assistance from Tim Culpan.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. projected quarterly revenue well above analysts’ estimates, brushing aside concerns that tighter U.S. sanctions on No. 2 customer Huawei Technologies Co. could dampen its business.Shares in the world’s largest contract chipmaker have slid two straight days on worries that Washington will tighten existing restrictions on exports to Huawei, potentially curtailing shipments from TSMC and other non-American firms. If the U.S. does move ahead, any disruption would be short-term because TSMC could replace some of the lost Huawei business with orders from other customers thanks to the 5G boom, Chairman Mark Liu said during a post-earnings conference with analysts.TSMC has recruited Intel’s former chief lobbyist to gauge the temperature in Washington and lessen any fallout from U.S.-Chinese tensions, including policies involving Huawei.“We are prepared to deal with this export control regulation,” Liu said, adding that if any new controls were introduced, TSMC would carefully “evaluate product by product eligibility of export.”But some analysts judged Liu’s assessment too rosy. TSMC may be over-estimating the ability of other customers to pick up the slack were its Huawei business to be curtailed, Bernstein analyst Mark Li said. “The forecast, according to TSMC, assumes ‘business as usual’. The company sees any disruption will be short-lived and for example commented that smaller telco infrastructure suppliers can quickly pick up the shortfall if Huawei can’t deploy 5G as planned. We find that too optimistic,” Li said.TSMC reported better-than-expected net income of NT$116 billion ($3.9 billion) in the December quarter. Gross margins came in at 50.2%, also exceeding estimates. It forecast revenue of $10.2 billion to $10.3 billion in the March quarter, surpassing estimates for $9.6 billion.Apple Inc.’s main chipmaker is banking that the rollout of fifth-generation enabled smartphones in 2020 will galvanize growth. Semiconductor orders from Huawei account for 10% of its revenue, according to Bloomberg data. TSMC’s robust results demonstrate how the world’s largest contract chipmaker is investing in technology to safeguard its market lead over Samsung Electronics Co. and Intel Corp. TSMC spent almost $15 billion on technology and capacity in 2019 and is prepared to shell out as much as $16 billion this year, anticipating the advent of fifth-generation smartphones. The company, a barometer for the tech industry thanks to its heft and place in the supply chain, has said the advent of 5G will result in more chips in devices than before.Capex growth this year will mainly come from an increase in specialty technology including CMOS sensors -- which turn light into digital signals for smartphone cameras -- and power management chips, and packaging technology, according to Chief Financial Officer Wendell Huang.TSMC previously reported record fourth-quarter revenue of NT$317.2 billion. Chief Executive Officer C. C. Wei has expressed hopes that the emergence of 5G, the foundation of future technologies from automated factories and smart homes to faster consumer electronics, will underpin its business in coming years.In addition to 5G, TSMC’s counting on growing demand for high-performance computing. Positive comments from Micron Technologies Inc. and Samsung suggest the global semiconductor market is poised for a gradual recovery on the back of demand related to 5G, artificial intelligence and automotive applications.(Updates with details on preparation for Huawei curbs)To contact the reporters on this story: Debby Wu in Taipei at email@example.com;Gao Yuan in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Toyota Motor Corp. is making a $394 million investment in Joby Aviation, one of the handful of companies with the seemingly implausible goal of making electric air taxis that shuttle people over gridlocked highways and city streets.Toyota is the lead investor in Joby’s $590 million Series C funding, alongside Baillie Gifford and Global Oryx and prior backers Intel Capital, Capricorn Investment Group, JetBlue Technology Ventures, SPARX Group and its own investment arm, Toyota AI Ventures. The deal, for now, makes the Santa Cruz, California-based Joby the best-funded “eVTOL” (electric vertical take-off and landing) startup in a booming category that must overcome significant regulatory hurdles and concerns about passenger safety and noise, bringing the total money it has raised to $720 million.“Air transportation has been a long-term goal for Toyota, and while we continue our work in the automobile business, this agreement sets our sights to the sky,” said Toyota President and Chief Executive Officer Akio Toyoda. “As we take up the challenge of air transportation together with Joby, an innovator in the emerging eVTOL space, we tap the potential to revolutionize future transportation and life.”Over the past year, the 82-year Japanese automaker has deepened its interests in futuristic transportation technologies. Last year it backed Recogni Inc., a Silicon Valley maker of autonomous vehicle systems, and May Mobility, an Ann Arbor, Michigan-based operator of self-driving shuttle buses. At CES earlier this month, Toyota announced its intention to build a 175-acre community, or “Woven City”, at the base of Mount Fuji to serve as a showcase for self-driving cars and other innovations in transportation.Joby is an emerging player in a field of air-taxi companies that includes Airbus SE; South Korean automaker Hyundai, which recently announced plans to design and produce an air taxi with Uber Technologies Inc.; and Kitty Hawk, the brainchild of Alphabet co-founder Larry Page, which is developing an air taxi in conjunction with Boeing Co. Volocopter, a startup in Germany, is backed by Zhejiang Geely Holding Group Co., the biggest investor in Mercedes-Benz maker Daimler AG and owner of Swedish manufacturer Volvo and British automaker Lotus.In addition to announcing the funding, Joby released an image of its prototype aircraft. The vehicle, which looks like an oversized toy drone, sports six electric propellers and is capable of flying 150 miles on a single charge, at speeds of up to 200 miles per hour, the company said. It’s designed to carry four passengers and a pilot, an approach that differs from that of rivals such as Kitty Hawk, whose two-seat “Cora” vehicle is intended to fly autonomously, without an onboard pilot.Joby says it will manufacture prototypes at a facility in Marina, California, near Monterey, but plans to tap Toyota’s famous manufacturing prowess to build “highly reliable complex hardware at increased scale,” said Paul Sciarra, Joby’s executive chairman and a co-founder of Pinterest.In December, Joby and Uber announced a separate partnership to jointly introduce Joby air taxis in at least two cities, with customers booking and paying for flights via the Uber app.The most pressing challenge for Joby, which now has around 400 employees, is obtaining certification from the Federal Aviation Authority and other regulatory agencies around the world. Joby says this is a three- to five-year process that it formally began in 2018.Over the past few years, both the FAA and the European Union Aviation Safety Agency (EASA) have moved to support commercial development of air taxis and released special guidelines to regulate small aircraft, with rules that differ from those governing conventional helicopters and fixed-wing airplanes. Much work remains, said Robin Lineberger, head of the Aerospace & Defense practice at Deloitte, including creating a system to manage municipal airspace in both normal and poor weather conditions and building physical infrastructure such as mini-airports that can support frequent takeoffs, landings and aircraft recharging.“The 2023 to 2025 time frame is fairly straightforward” for small demonstrations, Lineberger said. But he looks to 2035 “as a practical date for having a ubiquitous operational fleet in the thousands—not the hundreds—with a well-established framework for regulatory approval.”Sciarra and Joeben Bevirt, Joby’s founder and CEO, say they’ve spent significant time with Toyoda in Toyota City, Japan, as well as with other Toyota executives at Joby’s headquarters on a windy, 500-acre ranch in the hills north of Santa Cruz. They would not say whether they offered them a ride on the prototype aircraft, but Bevirt said: “They’re a loyal and tenacious company and this has been a dream of the Toyoda family for a very long time.”To contact the author of this story: Brad Stone in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Dimitra Kessenides at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Google getting rid of cookies and acquiring Pointy, Amazon's Bezos visiting India and lending money to UK's Deliveroo, Intel's new CIO and other stories are covered in this daily take.
Despite all the positivity, investors should think about adding a few large-cap stocks that pay a solid dividend to help anchor their portfolios in 2020...
over technology transfers has created plenty of losers during the past year. There are the US companies which have missed out on business as a result of sanctions, and the Chinese groups that have had to find alternative supplies.
AMD's latest supercomputing wins on the back of robust adoption of its robust 2nd Generation EPYC processors is likely to irk Intel and NVIDIA, which are currently dominating the space.
(Bloomberg) -- Huawei Technologies Co. broke into the top 10 recipients of U.S. patents last year, according to an analysis of filings with the U.S. Patent and Trademark Office, the latest sign that Chinese companies are aggressive in pursuing the U.S. lead in global technology.The telecom company’s 2,418 patents, along with 2,177 new patents issued to display-screen maker BOE Technology Group, help propel China into the rank of fourth-biggest recipient of U.S. patents, behind Japan and South Korea but ahead of Germany for the first time, according to the analysis by Fairview Research’s IFI Claims Patent Services.“China’s growing rapidly but they’re still way behind the U.S. in terms of patents,” said Larry Cady, a senior analyst with IFI.International Business Machines Corp. retained its title of top recipient of patents for the 27th year, with a record 9,262 patents, far ahead of No. 2 Samsung Electronics Co. and No. 3 Canon Inc.Overall, the patent office issued 333,530 patents, an all-time high and a 15% jump after a decline in 2018. Cady said the increase likely reflects efforts to release a bottleneck over what can qualify for a patent, such as in the fields of artificial intelligence.AI, cloud computing, blockchain and security were among the top areas for IBM, the Armonk, New York, company said. The IBM patents reflect the work of more than 8,500 inventors over 45 states and 54 countries, the company added.While IBM may be consistently the top recipient of patents, its holdings aren’t the largest, IFI found. That title belongs to Samsung Electronics Co. of South Korea, with Canon Inc. of Japan the second-largest corporate owner of patents. The difference, Cady said, is that IBM doesn’t keep all of its patents.“We really look at new patents as an indication of innovation and we regularly review and prune our patent assets,” said Jason McGee, chief technology officer for IBM Cloud Platform. “We may get rid of ones that we don’t think are strategic or could be better served with someone else.”IBM also announced that it’s joined the License on Transfer, or LOT, Network, which was co-founded by Red Hat Inc. IBM bought the software company for $34 billion last year.Group members pledge that all network members will get a license to any patent that ends up with what’s known as a “patent assertion entity,” meaning a company that doesn’t make products and whose sole purpose is to extract royalties from those who do. The group helps protects automakers and retailers who are just entering the technology arena that’s often marked by lawsuits.“If you want to be any successful company, you have to be a successful high-tech company,” said Ken Seddon, head of the LOT Network.Overall, the list of top recipients is dominated by American and Asian technology companies. Behind IBM, Samsung and Canon are Microsoft Corp., Intel Corp., LG Electronics Inc. and Apple Inc. topping the list after Canon. Ford Motor Co., which broke into the top 10 last year, was just ahead of Amazon.com Inc. and then Huawei.While the numbers are small, the fastest-growing patent classifications were in the gene-splicing technology known as CRISPR, hybrid plants, 3-D printing and cancer therapies, the analysis showed.Many of the patents issued to Huawei relate to things like high-frequency transmission that are needed for the next generation of wireless technology known as 5G.President Donald Trump’s administration in May moved to restrict U.S. companies from doing business with Huawei. The administration has said Huawei gear could be used for spying -- an allegation the company denied.“The U.S. is kind of at a funny position with Huawei -- we’re threatening them with limiting access to technology and access to the markets,” Cady said. “At the same time, 5G is rolling out and they’re the dominant in 5G.”To contact the reporters on this story: Susan Decker in Washington at firstname.lastname@example.org;Christopher Yasiejko in Wilmington, Delaware, at email@example.comTo contact the editors responsible for this story: Jon Morgan at firstname.lastname@example.org, Elizabeth Wasserman, John HarneyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Yahoo Finance speaks with Microsoft CEO Satya Nadella about the company's big JEDI contract win from the U.S. government.
Intel (INTC) showcases its new Xe DG1 graphics card at the 2020 CES event. It is the company's first discrete graphics card in nearly two decades.