Zacks Industry Outlook Highlights: ARM Holdings, Qualcomm, Semtech and Linear Technology - Press Releases

By
A A A

For Immediate Release

 

Chicago, IL - May 18, 2012 - Today, Zacks Equity Research discusses the U.S. Semiconductors, including ARM Holdings ( ARMH ), Qualcomm ( QCOM ), Semtech Corp ( SMTC ) and Linear Technology ( LLTC ).

 

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/75383/semiconductor-stock-outlook-may-2012

 

Manufacturing digital ICs is expensive, as it requires state-of-the-art technology and processes. On the other hand, digital products are cheaper, so cost recovery is more difficult. This has led to specialization in the industry and a greater contribution from Asian manufacturers. However, a significant portion of the intellectual property remains with the domestic companies.

One of the primary beneficiaries of the growth in mobile phones, tablets and the like is ARM Holdings ( ARMH ), with its power-efficient, low-performance chip architecture that dominates the growing mobile phone and tablet markets. With new versions of ARM chips coming to market, it is likely that the chips will gradually spread to the server segment as well (probably not a 2012 phenomenon).

Others would be Qualcomm ( QCOM ), Samsung and Texas Instruments, all of which are big semiconductor manufacturers that use ARM architecture. As such, we remain relatively positive about Samsung and Qualcomm in 2012.

We are also optimistic about Intel and AMD, given their new product ramps and focus on the data center segment. Although we are a wee bit cautious about Intel's growth initiatives in mobile and believe that execution will be key to delivering on its plans, the company's market position, cash balance, technology lead and management strategy and execution are positives in our opinion.

AMD is also worth watching, as management has been delivering on its promises. Moreover, the company is seeing some real success in its graphics business, which should complement initiatives targeted at rationalizing its debt, increasing focus on R&D and operation of a lower-cost model.

The analog and mixed-signal market is dependent on innovation. Consequently, these products generate higher margins than digital products. They are also more customized and have longer life cycles.

Most of these companies are seeing somewhat stronger demand right now, although there are some issues based lingering effects of the Thailand floods and economic sluggishness. We are particularly positive about Semtech Corp ( SMTC ), given its recent deal wins, product cycles, order rebound and position in the communications market.

Companies like Linear Technology ( LLTC ) has a focus on the automotive end market that should do well this year.

 

 

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679 .

 

About Zacks

 

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581 .

 

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

Follow us on Twitter:  http://twitter.com/zacksresearch

 

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

 

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

 

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com


 
ARM HOLDNGS ADR (ARMH): Free Stock Analysis Report
 
LINEAR TEC CORP (LLTC): Free Stock Analysis Report
 
QUALCOMM INC (QCOM): Free Stock Analysis Report
 
SEMTECH CORP (SMTC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ARMH , LLTC , QCOM , SMTC

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Can You Trust CarFax?
Can You Trust CarFax?               

Stocks

Referenced

Most Active by Volume

164,810,018
  • $16.16 ▲ 4.12%
50,233,746
  • $55.89 ▲ 4.66%
38,892,062
  • $37 ▲ 5.35%
36,824,964
  • $35.15 ▲ 1.88%
34,222,883
  • $9.74 ▲ 6.22%
32,620,827
  • $100.58 ▲ 0.01%
29,001,008
  • $30.10 ▼ 0.76%
25,347,187
  • $8.25 ▲ 1.48%
As of 8/21/2014, 04:03 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com