Maxim Integrated Products Inc.
) recently launched a transmitter chipset that will enable data
centers to output data four times faster while consuming less
Data centers facilitate the secure storage of data and its
retrieval for use on demand. In a cloud environment, data centers
also run the applications of the core business process of the
Given the fact that data centers have to satisfy demand for data
storage and retrieval all through the day and every day of the
year, they are in need of a huge and uninterrupted power supply.
This makes electricity their most significant expense.
Big IT stalwarts such as
) and others all run their own multiple datacenters around the
globe. Demand for independent data centers is also on the rise, as
even small and medium-sized businesses are beginning to understand
Maxim's transmitter chipset can improve the performance of data
centers. The transmitter chipset has the ability to improve upon
the speed and energy efficiency of data centers, thereby enabling
better management and cost control.
According to Gartner, worldwide data center hardware spending is
expected to be $106.4 billion in 2012, and cross $126.2 billion in
2015. The figure highlights the opportunity in the data center
market for Maxim.
In the fourth quarter of 2012 (the last-reported quarter), Maxim
posted revenue of $605.0 million, up 5.9% sequentially, down 3.4%
year over year and within management's guidance range of
$590.0-620.0 million. Revenue was down across all end-markets in
the last quarter.
Currently, Maxim Integrated Products Inc. has a Zacks #3 Rank,
implying a short-term Hold rating.
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