Weekly Tech Update: TXN, BRCM, CREE, QCOM, INTC

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Texas Instruments

Most semiconductor stocks slumped this past week after SanDisk, a flash storage solutions company, cut its first fiscal quarter revenue forecast due to certain product qualification delays, lower than expected sales of enterprise products and lower pricing in some areas of the business. Recent signs of weakening PC demand added to the downward pressure on semiconductor stocks. The Philadelphia Semiconductor Index (SOX), which increased by approximately 30% in 2014, has declined by almost 8% so far this month. Despite short-term weakness, the Semiconductor Industry Association (SIA) believes that the semiconductor market is well-positioned for continued growth in 2015 and beyond. The market achieved record sales for two consecutive years (2013 and  2014).

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

See Our Complete Analysis for These Companies Here

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Texas Instruments

Texas Instruments (NASDAQ:TXN) last week added a new device (MSP432) to its  low cost microcontroller (MCU) platform, introduced the industries first smart, high-side power switch with programmable current limit for the automotive segment, and launched the industry’s first online classroom for analog designers. The company also announced joining US2020 to help mobilize 1 million STEM mentors annually by 2020.  (Read Press Releases)

Our price estimate of $49 for Texas Instruments is at an approximate 10% discount to the current market price. The company’s stock price declined marginally (~5%) last week. TI has a current market cap of  $58 billion. We estimate the company will 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.

Broadcom

Broadcom (NASDAQ:BRCM) announced a number of new products for the Chinese cable and set-top box market at the 23rd China Content Broadcasting Network exhibition, last week. (Read: Broadcom Introduces A Range Of New Products For The Chinese TV Market) The company also announced that its PAM4 PHY platform is seeing strong adoption by original equipment manufacturers (OEMs) and original device manufacturers (ODMs). Broadcom launched the industry’s first 28 nanometer (nm) electronic dispersion compensation (EDC) physical layer transceiver (PHY) with support for long reach multimode (LRM). (Read Press Releases)

Broadcom’s stock price declined by 7% last week. Our price estimate of $44 for the company is now slightly above the current market price. Broadcom has a current market cap of approximately $25 billion. 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.

CREE

Leading LED manufacturer, Cree (NASDAQ:CREE) introduced new LEDs (Rural Utility Light (RUL) Series) to accelerate adoption of LED lighting across rural areas in North America, last week. (Read Press Release) The company saw a 7% decline in its stock price last week. Our valuation of $37 for Cree is now slightly above the current market price of $35, which translates into market cap of $4.1 billion. We estimate Cree will report revenue and net income of $1.95 billion and $120 million, respectively, for calendar year 2015. For fiscal year 2015 (fiscal year ends in June) we forecast non-GAAP EPS of $1.72.

Qualcomm

Leading mobile chipmaker, Qualcomm (NASDAQ:QCOM) announced its collaboration with AMC Health, a privately held provider of real-time patient management solutions, to accelerate the transformation of chronic care and population health management by significantly enhancing connectivity and care coordination for at-risk patients in a cost-effective manner. (Read Press Release)

Our valuation of $72 for Qualcomm is marginally above the current market price. The stock currently trades around $67, which translates into market cap of $111 billion. 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 (ended September), we forecast non-GAAP diluted EPS of $4.68 as compared to market consensus of $4.96.

Intel

Last week, Intel (NASDAQ:INTC) unveiled its much anticipated 3D NAND technology, as a result of its joint venture with Micron Technology (NASDAQ:MU). (Read Press Release) The company’s stock traded between $30 – $31, which translates into market cap of $143 billion. Our $34.29 valuation for Intel is at a more than 10% premium to the current market price. For 2015, we forecast the company to report revenue and net income of approximately $57 billion and $13 billion, respectively. Our non-GAAP estimate of $2.58 for 2015 is above the market consensus of $2.36.

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