48.22 +0.49 (1.03%)
Before hours: 9:06AM EDT
|Bid||48.25 x 1300|
|Ask||48.18 x 4000|
|Day's range||46.97 - 48.32|
|52-week range||43.63 - 69.29|
|Beta (5Y monthly)||0.79|
|PE ratio (TTM)||8.77|
|Earnings date||22 Oct 2020 - 26 Oct 2020|
|Forward dividend & yield||1.32 (2.77%)|
|Ex-dividend date||06 Aug 2020|
|1y target est||56.90|
Intel Corporation (NASDAQ:INTC) stock is about to trade ex-dividend in three days. Ex-dividend means that investors...
(Bloomberg) -- Nvidia Corp. is in advanced talks to acquire Arm Ltd., the chip designer that SoftBank Group Corp. bought for $32 billion four years ago, according to people familiar with the matter.The two parties aim to reach a deal in the next few weeks, the people said, asking not to be identified because the information is private. Nvidia is the only suitor in concrete discussions with SoftBank, according to the people.A deal for Arm could be the largest ever in the semiconductor industry, which has been consolidating in recent years as companies seek to diversify and add scale. But any deal with Nvidia, which is a customer of Arm, would likely trigger regulatory scrutiny as well as a wave of opposition from other users.Cambridge, England-based Arm’s technology underpins chips that are crucial to most modern electronics, including those that dominate the smartphone market, an area in which Nvidia has failed to gain a foothold. Customers including Apple Inc., Qualcomm Inc., Advanced Micro Devices Inc. and Intel Corp., could demand assurances that a new owner would continue providing equal access to Arm’s instruction set. Such concerns resulted in SoftBank, a neutral company, buying Arm the last time it was for sale.No final decisions have been made, and the negotiations could drag on longer or fall apart, the people said. SoftBank may gauge interest from other suitors if it can’t reach an agreement with Nvidia, the people said. Representatives for Nvidia, SoftBank and Arm declined to comment.Divestment Drive“With Nvidia’s low-cost fabless model enabling it to focus on R&D, engineering and programming, the fit with Arm would be perfect,” said Neil Campling, an analyst at Mirabaud Securities.Nvidia is the largest maker of graphics processors and it’s spreading the use of the gaming component into new areas such as artificial intelligence processing in data centers and self-driving cars. Marrying its own capabilities with central processor units designed by Arm may enable it to take on Intel and Advanced Micro Devices in a more comprehensive way, according to Rosenblatt Securities analyst Hans Mosesmann. He estimates Nvidia would have to pay about $55 billion for Arm.“You need control of BOTH CPU and GPU roadmaps and this, of course, includes data centers,” he wrote in a note Friday, referring to central processing units and graphic processing units. “Strategically, Nvidia needs a scalable CPU that can be integrated into its GPU roadmap, as is the case with AMD and Intel.”Billionaire Masayoshi Son has been selling some of SoftBank’s trophy assets as the company seeks to pay down debt at the Japanese conglomerate. SoftBank has offloaded part of its stake in Chinese internet giant Alibaba Group Holding Ltd. and a chunk of its holdings in wireless carrier T-Mobile US Inc.SoftBank has been exploring options to exit part or all of its stake in Arm through a sale or public stock listing, Bloomberg News has reported. The chip-design company could go public as soon as next year if SoftBank decides to proceed with that option, people with knowledge of the matter have said.Arm has become more valuable as it pushes its architecture into smart cars, data centers and networking gear. The company could be worth $44 billion if it pursues an initial public offering next year, a valuation that may rise to $68 billion by 2025, according to New Street Research LLP.Nvidia, based in Santa Clara, California, is the world’s largest graphics chipmaker. The stock has surged more than twenty-fold in the past five years, giving the company more firepower to do large deals. Nvidia’s market value has increased to more than $260 billion in that time, surpassing Intel. The stock was little changed Friday in New York.(Updates with analyst comment in eighth paragraph)For 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.
SHAREHOLDER ACTION NOTICE: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Intel Corporation
Stocks have continued to rebound from the coronavirus-driven sell-offs that rocked the market in March, and the S&P 500 index is now roughly flat on the year. FirstEnergy (NYSE: FE), Intel (NASDAQ: INTC), and Mohawk Industries (NYSE: MHK) have each sank by double digits despite the broader rally and are the S&P 500's biggest losers this month. Buying quality companies that are experiencing temporary setbacks can dramatically improve your long-term returns, but you also have to be mindful of dangers that come with this move.
(Bloomberg Opinion) -- As if to symbolize U.S. decline, a giant of American industry is being overtaken by foreign rivals. Intel Corp., the company that once marked U.S. dominance of the semiconductor industry, has announced that the introduction of its new flagship series of computer chips, 7nm CPUs, will be a year behind schedule. This is after its previous generation of chips, 10nm CPUs, took much longer than expected.Intel, unlike many semiconductor companies, designs and fabricates its own chips. On the design front, it’s being overtaken by domestic rivals and U.K.-based ARM Ltd., which recently snatched Apple Inc.’s business away from Intel. On the fabrication side, Intel is losing ground to Taiwan’s TSMC, which specializes in manufacturing chips for other companies and which has had little trouble making its own new generations of chips on time. TSMC now has a higher market value of the two companies:Intel’s failures probably come as a result of various factors that are specific to the company itself. Some observers say that by insisting on vertical integration, Intel missed out on the opportunity to learn from the innovations generated by other companies (it’s now working on switching to a less integrated model). Its focus on its existing high-end markets caused it to stumble in newer markets for cheaper chips -- a classic case of the so-called innovator’s dilemma. It also made some bad decisions about fabrication technologies, and it suffered from various personnel issues at the top.Some, however, will probably see Intel’s stumbles as a sign that the U.S. isn’t doing enough to back the semiconductor industry. That will intensify calls for the government to step in and support the ailing giant. Already, lawmakers are considering a $25 billion subsidy program for chip manufacturers, ostensibly to compete with China, which heavily underwrites its own companies. Intel, already one of the biggest recipients of government subsides, and whose chief executive officer has lobbied for the new bill, would undoubtedly reap a significant portion of the windfall.Indeed, there are some good reasons for the U.S. government to boost the chip industry. National defense is one. Computer chips are essential to modern warfare, and it’s too risky to let China have a stranglehold on high-level control circuitry. Taiwan is a de facto U.S. ally, but if it gets blockaded in a conflict with China, the U.S. could be cut off from TSMC’s factories and lose access to critical chip supplies at the worst possible moment.Industrial clustering is a second reason to want a domestic semiconductor industry. Chipmakers, like all high-tech companies, employ lots of skilled workers; having those workers in the U.S. creates a deep pool of talent and ideas that other companies located nearby can take advantage of, encouraging other tech industries to locate in the country as well.But there are more efficient ways to accomplish those goals than to throw money at one big, dominant company. Intel has been spending tens of billions of dollars on stock buybacks in recent years, halting only recently during the coronavirus pandemic. Buybacks, like dividends, are a way of returning cash to investors; basic corporate finance theory says that companies do this when they have more cash than they know how to invest productively. Thus, throwing government money at an existing champion such as Intel is likely to fatten shareholders’ pockets wallets rather than galvanize a wave of world-beating new investments.Instead, the government can pursue semiconductor dominance in more effective ways. The first is to encourage TSMC to put chip plants in the U.S., reducing the risk of Taiwan being isolated in a conflict. This already is beginning, and the Taiwanese chipmaker is planning a $12 billion facility in Arizona.Second, the U.S. can help encourage new chip manufacturers to get better at competing with Intel. An analogy is the auto industry, where the most cutting-edge innovation in recent years has come not from established -- and heavily subsidized -- giants such as Ford Motor Co. and General Motors, but from upstart innovator Tesla Inc., a beneficiary of tax breaks for clean-energy vehicles and which is now worth more than both older companies combined. In addition to encouraging innovation, new companies provide diversification, so that an industry doesn’t pin all its hopes in one or two big established players. And adding more companies fosters healthy competition as well.The U.S. needs more dynamic new companies of the Tesla variety. But as Andy Grove, one of Intel’s founders, warned in 2010, it can be difficult for smaller U.S. companies to scale up to compete with giant foreign rivals; it’s difficult for modern upstarts to do what Intel managed to do. Although capital is cheap on paper, the U.S. financial system isn’t set up to dish out the large sums of cheap money that young manufacturing companies need to scale up to Intel-like size; even Tesla has skirted the edge of bankruptcy multiple times. GlobalFoundries, a U.S. company whose business model is similar to that of TSMC, has been unable to bear the research and development costs necessary to stay at the leading edge.This could be addressed with a version of Grove’s suggestion for a government-led scaling bank, which would provide cheap financing for young companies to grow and reach the technological frontier. Instead of unconditional cash subsidies, these loans would be contingent on investment and growth. And they would be temporary in nature; whether a company succeeded in becoming a new high-tech giant, its access to the spigot of cheap financing would be finite. Industrial policy is sometimes necessary, but it’s a tricky thing to get right. By helping upstart high-tech manufacturing companies scale up, the U.S. might be able to support strategic industries while retaining the benefits of market competition.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Noah Smith is a Bloomberg Opinion columnist. He was an assistant professor of finance at Stony Brook University, and he blogs at Noahpinion.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) -- Samsung Electronics Co. beat earnings estimates and gave a cautiously optimistic outlook, predicting that new smartphones and gaming consoles will boost demand for memory chips in the second half of the year.Net income increased to 5.5 trillion won ($4.6 billion) in the three months ended June, the company said in a filing on Thursday, compared with the 4.9 trillion won average of estimates compiled by Bloomberg. The South Korean company had reported preliminary numbers earlier this month that showed operating profit rose 23%.Samsung, which is the world’s largest smartphone maker and also supplies components like memory chips, is navigating the tumult of the coronavirus pandemic, along with the rest of the tech industry. The company warned of a slump in its consumer business in the second quarter. But sales of smartphones, televisions and other gadgets have started to recover, and the company said demand is likely to get a boost from the introduction of new game consoles and phone models, expected from Apple Inc. and Samsung itself.“Covid-19 continues to cloud the demand outlook but structurally speaking, the demand is there,” Bloomberg Intelligence analyst Anthea Lai said. “We’re getting there to have more 5G smartphones coming from Samsung and the expectation in the second half is to have more demand from consumers.”Samsung shares rose as much as 1.9% in Seoul trading, pushing gains this week to about 10%. The company said it would not provide annual financial guidance because of the coronavirus uncertainty.Though it’s best known abroad for its phones, Samsung makes most of its profit from memory chips, used in everything from phones and consoles to servers that help deliver online services like video and music. Samsung said it anticipates the overall DRAM market to be up.“Looking towards the second half, we do expect mobile demand overall to recover and also graphic demand to grow,” said Jinman Han, senior vice president of semiconductor business. “For servers, memory demand driven by stay-at-home activities seems to continue as Covid-19 and other uncertainties persist.”The company’s own mobile devices, set to be updated with flagship Galaxy Note and Galaxy Z Fold releases shortly, are expected to improve revenue on a quarterly basis, but the company underlined that uncertainties related to Covid-19 will continue.“We also think that customers may have increased their inventories during the 1H, so another variable to the second half demand is the direction of our customers’ inventory management,” said Han.Samsung shares rose earlier in the week on news of Intel Corp.’s delayed 7nm chip production and likely need to outsource some future chipmaking to the likes of Taiwan Semiconductor Manufacturing Co. Samsung is one of the few companies equipped to handle advanced semiconductor manufacturing, and the potential to garner more Intel business boosted market sentiment.What Bloomberg Intelligence SaysSamsung’s foundry business could benefit from Intel’s chipmaking retreat as industry leader TSMC may have a tight production schedule to fulfill the U.S. company’s demand. Samsung is already a supplier of Intel CPUs based on the 14-nanometer process.\- Anthea Lai, analystClick here for the research.Aside from the impact of Covid-19, geopolitical issues are also likely to reposition the global supply chain in a way that will affect Samsung’s business. Bans on Huawei Technologies Co. in the U.S. and U.K. open more opportunities for Samsung to sell 5G networking gear and smartphones.The mobile division of the world’s largest smartphone maker posted a 25% increase in operating income to 1.95 trillion won. The Korean giant is expecting smartphone sales to rise in the third quarter with the launch of new Android devices including its foldable phone lineup but warned of intensifying market competition among smartphone makers that will strive to make up for weak performances during the pandemic.Read more: Samsung Teases New Mobile Gadgets For a Stay-at-Home Generation“There is a possibility that the Galaxy Fold 2 will become a game changer in the smartphone ecosystem,” said Greg Roh, senior vice president at HMC Securities. “Most of the shortcomings found in the preceding model have been overcome with the ultra thin glass and a larger display.”Samsung’s display division, which supplies organic light-emitting-diode-screens for Apple’s iPhones, posted operating profit of 300 billion won. Although the display business suffered as the smartphone market slumped due to the virus, the loss was offset by reimbursement from Apple. Analysts have said the amount of payment was about 1.1 trillion won.The consumer electronics unit, which includes TVs and appliances, posted 730 billion won of profit. Samsung expects a recovery in TVs and digital appliances in the second half of this year thanks to pent-up demand after the virus lockdowns and holiday spending.(Updates with details from earnings call from third paragraph)For 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.
When it comes to dividend investing, the tech sector often doesn't rank very high. While technology companies are usually more concerned with innovative growth, and dividend yields are on average far lower than other areas of the market, oft-overlooked tech names that dole out a dividend have some key advantages. Three tech dividend stocks chosen by Fool.com contributors for the month of August are Taiwan Semiconductor (NYSE: TSM), Cisco Systems (NASDAQ: CSCO), and Applied Materials (NASDAQ: AMAT).
INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Intel Corporation (INTC) Investors
SHAREHOLDER ACTION ALERT: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Intel Corporation.
The Law Offices of Frank R. Cruz announces that it has filed a class action lawsuit in the United States District Court for the Northern District of California captioned Huang v. Intel Corporation., et al., (Case No. 20-cv-05194) on behalf of persons and entities that purchased or otherwise acquired Intel Corporation ("Intel" or the "Company") (NASDAQ: INTC) securities between April 23, 2020 and July 23, 2020, inclusive (the "Class Period"). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act").
Intel unveils a new machine programming system, in conjunction with MIT and Georgia Tech: machine inferred code similarity.
When Micron Technology (NASDAQ: MU) reports earnings, the event tends to set the tone for semiconductor companies in the upcoming earnings season. Micron crushed Wall Street's third-quarter estimates near the end of June, setting the stage for a plethora of strong reports from the semiconductor industry. The memory chip maker is a weather vane for technology stocks at large, so it's only natural that Micron generates lots of headlines.
(Bloomberg) -- MediaTek Inc. has hired a former U.S. Department of Commerce official to help the Taiwanese chipmaker navigate worsening U.S.-China tensions that have already ensnared its customer Huawei Technologies Co.Patrick Wilson, who most recently served as director of the Office of Business Liaison for the Department of Commerce, will be appointed vice president of government affairs at MediaTek USA and lead its public policy initiatives, the company said in a draft press statement seen by Bloomberg News. Wilson previously worked at the Semiconductor Industry Association, where he led the trade group’s dealings with the federal government.Technology companies with ties to or operations in China have come under increasing scrutiny from Washington amid growing tensions with Beijing, forcing them to ramp up spending on lobbying efforts in the U.S. The Commerce Department said in May it would require licenses before allowing U.S. technology to be used by Huawei or its 114 subsidiaries, including its chip-design unit HiSilicon, thus preventing suppliers including Taiwan Semiconductor Manufacturing Co. from shipping HiSilicon-designed parts to the Chinese company.Earlier this year, TSMC hired former Intel Corp. lobbyist Peter Cleveland, while ByteDance Ltd., the Chinese owner of the viral TikTok app that has also come under U.S. scrutiny, spent a record $500,000 on federal lobbying in the quarter ended June 30.Analysts are expecting Huawei to rely on MediaTek for more orders after TSMC said it will not ship new chips designed by HiSilicon after Sept. 15. MediaTek may supply its chips to Huawei for a flagship handset that may be introduced this year as the U.S. export controls impact supply from Qualcomm Inc. and TSMC, Sanford C. Bernstein analysts including Mark Li wrote in a July 23 note.MediaTek shares have gained about 150% since its March lows to close at NT$680 on July 28.For 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.
Investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.
(Bloomberg) -- Advanced Micro Devices Inc. is gaining share in the lucrative market for server chips, the latest sign it’s benefiting from close ties to a major Taiwanese factory partner to win orders from larger rival Intel Corp. Shares surged in late trading.Strides in server chips will help propel third-quarter revenue to about $2.55 billion, Santa Clara, California-based AMD said Tuesday, topping analysts’ average prediction for $2.3 billion. The company also raised full-year sales forecasts, and second-quarter results beat Wall Street expectations. AMD stock climbed as much as 11% in extended trading after closing at $67.61 in New York.After decades of lagging behind Intel, AMD has been catching up in recent years, helped by advances at Taiwan Semiconductor Manufacturing Co., which makes chips on its behalf. Intel, by contrast, has suffered a series of manufacturing setbacks, last week saying it’s fallen behind in a new method for cutting-edge semiconductors and that it’s considering scrapping a decades-old strategy of making chips in-house.The admissions sparked a selloff in Intel stock and underscored the ways Intel is being surpassed by TSMC, which in turn helps TSMC’s partners.AMD Chief Executive Officer Lisa Su said her bullish outlook is based on expectations that her company will keep adding share as new products gain wider adoption at computer makers. She said AMD has passed 10% share of the profitable server chip market and that while supply of leading-edge chips is “tight,” the company is confident it can meet increasing demand.AMD is also growing quickly in notebooks, she said. Demand for personal computers hasn’t been hurt by the Covid-19 pandemic as much as the company initially feared, she said on a conference call with analysts.“We delivered our highest client (PC) processor revenue in more than twelve years,” she said. “We believe our growth was largely driven by our eleventh straight quarter of market share gains.”Demand for chips for notebooks and servers will increase in the second half, Su said.Despite the optimism, Su reminded analysts that AMD is “in the early innnings” of its journey to where it expects to be.Intel’s announcement of further delays in improving its production does not change what AMD has to do, she said.“The most important thing for us is to execute to our commitments to our customers,” she said. “Basically what we’re asking is for people to trust us with their most important workloads.”Under Su, AMD has revamped its products and come surging back from what analysts had said was the brink of insolvency. Investors now want the company to justify its soaring valuation by growing to become more than just an afterthought to computer makers. The stock has almost doubled over the past year.On Tuesday, AMD said it sees 2020 revenue rising about 32%, driven by strength in PC, gaming and data center products. Wall Street expected the company’s sales to climb 25% this year to $8.4 billion. Either way, that is still about half what Intel books in one quarter.AMD’s achievement of its more than 10% interim server market target still puts it a long way from the more than 20% it achieved about 15 years ago. But it is up from less than 1% before introducing new products in 2017. Server computers are the backbone of corporate networks and the data centers that run the internet. Server chips can sell for thousands of dollars each.AMD reported second-quarter net income of $157 million, or 13 cents a share, compared with $35 million, or 3 cents, in the same period a year earlier. Revenue rose 26% to $1.93 billion. Profit, excluding certain items, was 18 cents. Analysts estimated profit of 16 cents on sales of $1.86 billion.For 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.
Plus, Motley Fool co-founder David Gardner and Fool.com contributor Danny Vena interview MercadoLibre's (NASDAQ: MELI) head of investor relations, Federico Sandler, to get a sense of the company's total addressable market and how it is dealing with COVID-19, among other things. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
Intel's (NASDAQ: INTC) stock plunged 16% on July 24 after it followed up its second-quarter earnings beat by disclosing that its new 7nm process is now "trending approximately 12 months" behind its internal target. As a result, Intel doesn't expect to launch its 7nm chips until 2022 and 2023. During the conference call, CEO Bob Swan blamed the delay on a "defect" that caused yield degradation issues and stated Intel would rely on "contingency plans" -- including the use of third-party foundries -- to get back on track.
The move for digital currency comes as gold prices scaled northward amid a rush for assets that are considered safe haven. Lest we forget, crypto fans have often touted bitcoin as "digital gold."
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. kept up its record-breaking streak Tuesday, briefly becoming the world’s 10th most valuable corporation before paring gains.Taiwan’s biggest stock was up around 1.2% in Taipei, after rising as much as 9.9% and going beyond $410 billion in value, leapfrogging U.S. giants Johnson & Johnson and Visa Inc. in the process. Daily stock moves are capped at 10% in Taiwan’s equity market.It’s difficult to overstate the influence that TSMC wields on Taiwan’s financial markets. Making up almost a third of the local benchmark, it has single-handedly pushed the Taiex past a record that had stood for three decades. Its rally is attracting foreign flows into Taiwanese equities, increasing demand for the local currency. The Taiwan dollar rose 1% Tuesday to the strongest since April 2018.The latest boost to TSMC’s shares came after Intel Corp. warned last week that its 7-nanometer chips are behind schedule and it may outsource their production. The U.S. chipmaker is expected to funnel new business to TSMC, given its global lead in silicon fabrication and track record of making semiconductors for the world’s largest tech corporations.Intel’s struggles are buoying stocks in Asian suppliers of made-to-order chips. Samsung Electronics Co., which is investing heavily in its own foundry business, jumped as much as 5.8% Tuesday, its biggest intraday gain in almost two months. Chinese rival Semiconductor Manufacturing International Corp. climbed 6.6% in Hong Kong.“Samsung Electronics’ position as a foundry partner is expected to rise. Korean investors anticipate that Samsung could produce Intel’s CPU and discrete GPU,” Hana Financial Investment analysts wrote in a note. But “to narrow the gap with TSMC, it is essential for Samsung to expand its Austin fab.”A report on Monday suggested that Intel had placed orders with TSMC for 180,000 units of 6nm chips for 2021. Meanwhile, brokerages including Nomura Holdings Inc. and Credit Suisse Group AG upgraded TSMC to the equivalent of buy.(Updates with share price and analyst comment from first paragraph)For 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.