Weekly Tech Update: TXN, QCOM, FFIV, BRCM, AMAT, AMD

The semiconductor industry was one of the strongest performing sectors in 2014, driven by the continued strength in personal, network and service provider communications, and increasing electronics adoption around the world. According to The Semiconductor Industry Association (SIA), the global semiconductor industry posted record sales of $336 billion in 2014, a 9.9% increase from 2013. ^[1] Annual sales increased in all the regional markets for the first time since 2010. The semiconductor industry has achieved record sales in two consecutive years, and the SIA believes that the market is well-positioned for continued growth in 2015 and beyond.

Below is a weekly update for some of the technology companies that Trefis covers.

See Our Complete Analysis for These Companies Here

Texas Instruments

Texas Instruments (NASDAQ:TXN) introduced the industry’s first multi-standard wireless microcontroller platform that helps customers go battery-less with energy harvesting to enjoy always-on, coin cell-powered operation for multiple years. The company also announced that it will demonstrate how its analog technologies and embedded processing are driving innovation in energy management for next-generation power designs, at the Applied Power Electronics Conference (APEC) to be held in Charlotte, North Carolina, on March 16th to March 18th. (Read Press Releases)

Texas Instruments’ stock currently trades around $58 – $59, which translates into market cap of approximately $62 billion. Our price estimate of $49 for the company is at an approximate 15% discount to the current market price. We estimate TI to report revenue and net income of $13.6 billion and $3.05 billion this year, respectively. Our non-GAAP earnings per share (EPS) estimate for 2015 stands at $2.99, compared to the market consensus of $2.90.

Qualcomm

Last week, Qualcomm (NASDAQ:QCOM) extended LTE to unlicensed spectrum and integrated the technology into  its latest small cell solutions and RF transceivers for mobile devices. (Read Press Release) The company’s stock traded between $71 – $73 last week. Qualcomm has a current market cap of approximately $120 billion. Our valuation of $72 for the company is marginally lower than the current market price. We expect Qualcomm to report revenue of around $29 billion and net income of $6.25 billion for calendar year 2015. For fiscal year 2015 (fiscal year ends in September), we forecast non-GAAP diluted EPS of $4.68 as compared to market consensus of $4.96.

F5 Networks

F5 Networks (NASDAQ:FFIV) launched the Guardian Fast Start program to deliver increased technical enablement and services revenue opportunities to its partners. The company also announced its key focus areas for the ongoing Mobile World Congress. It plans to demonstrate how its solution portfolio helps service providers maximize the opportunities created by exponential increases in connected devices, applications, and broadband data usage. (Read Press Releases)

F5’s stock traded between $118 – $120 per share last week. The company has a current market cap of $8.7 billion. Our price estimate of $127 for F5 Networks is marginally above the current market price. For calendar year 2015, we forecast F5 to report revenue and net income of $1.79 billion and $332 million, respectively. For fiscal year 2015 (fiscal year ends in September), our non-GAAP EPS estimate stands at $6.39, which is in line with the market consensus.

Broadcom

Last week, Broadcom (NASDAQ:BRCM) introduced a new smartwatch platform for Android Wear devices. (Read: Broadcom Launches A New Smartwatch Platform For Android Wear Devices) The company also launched the industry’s first 5Gbps chipset for microwave backhaul and the first fully integrated chip for virtual customer premise equipment. SK Telecom, Korea’s largest telecommunications company, selected Broadcom’s latest small cell system-on-chip (SoC) devices with carrier aggregation technology to enhance its high-speed 4G LTE services. KT Corporation, a Korean telecommunications and Internet company, also deployed Broadcom’s industry-leading small cell system-on-chip (SoC) device to enhance its high speed 4G LTE wireless broadband services.

Broadcom’s stock price traded around $45 last week, which translates into market cap of approximately $27 billion. Our price estimate of $44 for Broadcom is slightly lower than the current market price. For 2015, we forecast the company to report revenue and net income of $9 billion and $856 million, respectively. Our non-GAAP EPS estimate of $3.31 for 2015 is above the market consensus of $3.00.

Applied Materials

Applied Materials (NASDAQ:AMAT) introduced the industry’s first in-line 3D CD SEM metrology tool for FinFet transistors and 3D NAND devices. (Read Press Release) Our price estimate of $22 for the company is approximately 10% lower than the current market price. Applied’s stock traded around $25 last week, which translates into market cap of around $31 billion. For calendar year 2015, we forecast Applied to report revenue and net income of approximately $10 billion and $1.5 billion, respectively. For fiscal year 2015 (fiscal year ends in October), our estimate for GAAP EPS stands at $1.21, which is lower than the consensus estimate of $1.25.

AMD

Last week, AMD (NYSE:AMD) disclosed the architectural details of its high-performance Carrizo system-on-chips (SoC). The company also announced that its FirePro S9150 server GPU is now available on the HP ProLiant DL380 Gen9, the world’s best-selling server. (Read Press Releases) AMD’s stock traded close to $3 last week, which translated into market cap of $2.4 billion. Our price estimate of $4.12 for AMD is at a considerable premium to the current market price. For 2015, we estimate AMD to report revenue and net income of $5.8 billion and $225 million, respectively.

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1. Global Semiconductor Industry Posts Record Sales in 2014, SIA, February 2, 2015 [↩]