The continued strength in personal, network and service provider communications, and increasing electronics adoption around the world, helped the semiconductor industry achieve record sales for two consecutive years (2013 and 2014). According to The Semiconductor Industry Association, the global semiconductor industry posted record sales of $336 billion in 2014, a 9.9% increase from 2013. Annual sales increased in all the regional markets for the first time since 2010. The Philadelphia Semiconductor Index increased by approximately 30% in 2014, as compared to a 12% growth in the S&P 500 index. The SOX index currently trades around $720. SIA believes that the market is well-positioned for continued growth in 2015 and beyond.
The semiconductor industry was abuzz with a lot of news last week as there were a number of conferences (Mobile World Congress in Barcelona and Game Developer Conference in San Francisco) being held across the globe, where almost every semiconductor company showcased new technology and partnerships. Below is a weekly update for some of the technology companies that Trefis covers.
See Our Complete Analysis for These Companies Here
AMAT
Applied Materials received Intel’s preferred quality supplier award, last week. (Read Press Release) The company’s stock traded between $24 – $25 last week. Applied has a current market cap of $29.6 billion. Our price estimate of $22 for the company is approximately 10% lower than the current market price. 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 earnings per share stands at $1.21, as compared to the consensus estimate of $1.25.
AMD
AMD announced an initiative to deliver the best possible VR (Virtual Reality) experience for developers and users through its new LiquidVR technologies and partnerships, at the Game Developer Conference. (Read Press Release) AMD’s stock traded close to $3 last week, which translated into market cap of $2.3 billion. Our price estimate of $3.76 for AMD is at a considerable premium to the current market price. For 2015, we estimate AMD to report revenue and net income of $5.7 billion and $106 million, respectively.
Broadcom
Broadcom made a series of announcements at the Mobile World Congress and CableLabs Conference. The company launched the industry’s first 5G WiFi 2×2 Multiple Input Multiple Output combo chip with Real Simultaneous Dual Band support for mobile devices, the world’s first upstream diagnostic analyzer technology, and two new Ultra HD system-on-chip (SoC) devices that integrate the advanced Multimedia over Coax Alliance(MoCA) 2.0 standard for cable home networking. (Read Press Releases)
Broadcom’s stock traded around $45 – $46 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.
Intel
Intel showcased its new mobile technology at the Mobile World Congress, unveiling a series of new products and refreshes for its mobile processor and modem lineup, as well as new security software OEM deals and alliances with various telecom equipment vendors. (Read: Intel Showcases New Mobile Technology At The 2015 Mobile World Congress) The company also honoured 21 companies with its ‘Preferred Supplier & Achievement’ awards and 11 companies with the ‘Supplier Continuous Quality Improvement Award’. (Read Press Releases)
Intel’s stock price traded close to $34 last week, which is almost in line withour $34.29 valuation for the company. Intel has a market cap of nearly $160 billion. 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.
Micron Technology
Micron Technology inaugurated the expansion of its Singapore NAND flash memory fabrication facility last week. The company’s stock price declined marginally (~5%) last week. Our valuation of $32 for Micron is slightly above the current market price. Micron has a market cap of around $31.5 billion. For calendar 2015, we estimate Micron will report revenue and net income of around $20 billion and $4.2 billion, respectively. Our non-GAAP diluted EPS estimate for calendar 2015 stands at $3.42, as compared to the market consensus of $3.73.
Nvidia
At the Game Developer Conference, Nvidia added a new set-top box to its Shield lineup. (Read: Nvidia Adds A Set-Top Box To Its Shield Family) The company also showcased VR Demos using its Titan X graphics card at the conference. Nvidia also opened the PhysX code to UE4 developers. (Read Press Releases)
Our $22 valuation for Nvidia is now almost in line with the current market price. The company’s stock traded close to $22 – $23 last week, which translated into current market cap of $12.7 billion. We estimate Nvidia to report revenues of around $4.9 billion and net income in excess of $700 million for calendar year 2015. Our forecast for non-GAAP EPS for the current year stands at $1.27 as compared to the market consensus of $1.17. We are yet to update our model for the fiscal 2015 earnings release.
Qualcomm
Qualcomm made a series of announcements at the Mobile World Conference, regarding: mobile and home connectivity solutions, next generation biometric solutions, automotive connectivity with new 4G LTE modems, and the next-generation of Snapdragon experiences. The company announced its partnership with Mercedes AMG Petronas to develop advanced communication features for its Formula One car, joined forces with Alcatel-Lucent and T-mobile to accelerate licensed assisted access adoption, and expanded its connected health ecosystem with new member companies. (Read Press Releases)
Qualcomm’s stock traded between $71 – $72 last week (market cap of approx $117 billion). Our valuation of $72 for the company is almost in line with 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 (ended September), we forecast non-GAAP diluted EPS of $4.68 as compared to market consensus of $4.96.
Texas Instruments
Last week, Texas Instruments announced that LGS Innovations, a leading provider of advanced networking and communications solutions for the U.S. Government, has selected its Keystone SoCs for next-generation portable communications solutions. TI also introduced a family of six high-performance audio analog-to-digital converters (ADCs) and the industry’s first 65-V synchronous step-down converter with Fly-Buck capability. (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 estimate for 2015 stands at $2.99, compared to the market consensus of $2.90.
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap |European Large & Mid Cap
More Trefis Research
Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.
