Breaking News
0

The Zacks Analyst Blog Highlights: Intel, QUALCOMM, Micron Technology, Advanced Micro Devices, Skyworks Solutions And Apple

By Zacks Investment ResearchStock MarketsAug 14, 2019 08:48AM ET
www.investing.com/analysis/the-zacks-analyst-blog-highlights-intel-qualcomm-micron-technology-advanced-micro-devices-skyworks-solutions-and-apple-200454992
The Zacks Analyst Blog Highlights: Intel, QUALCOMM, Micron Technology, Advanced Micro Devices, Skyworks Solutions And Apple
By Zacks Investment Research   |  Aug 14, 2019 08:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

For Immediate Release

Chicago, IL – August 14, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intel Corp. (NASDAQ:INTC) , QUALCOMM Incorporated (NASDAQ:QCOM) , Micron Technology, Inc. (NASDAQ:MU) , Advanced Micro Devices, Inc. (NASDAQ:AMD) , Skyworks Solutions, Inc. (NASDAQ:SWKS) and Apple, Inc. (NASDAQ:AAPL) .

Here are highlights from Tuesday’s Analyst Blog:

Trade War Dampens U.S. Chipmakers, Not Huawei: Here’s Why

The United States’ trade war with China intensified in May 2019 after the former blacklisted Huawei Technologies Co Ltd., restricting its trade with home-based companies over national security concerns. After initially agreeing to a partial embargo, on Aug 9, President Donald Trump announced that the U.S. government will not do business with Huawei and that he is not ready to make a trade deal with China anytime soon.

The trade restrictions on Huawei not only affect the company but also hamper revenues of several large and small-scale chip manufacturers. Since Huawei is a big consumer of these chip companies, giants like Intel Corp. have already requested the White House for permission to carry out partial trade with Huawei.

Chips Stocks Dampened by Huawei

In 2018, the United States alone contributed 6.6% of Huawei revenues, which is more than $104 billion as per the company’s annual report. The company focuses on telecommunications networks, information technology, smart devices and cloud services. It depends on several big and medium-sized American companies for sourcing chips and technology.

In 2018, Huawei spent $11 billion on purchasing components from U.S. firms including QUALCOMM Incorporated, Intel and Micron Technology, Inc., out of the $70 billion that it spent on total purchase.

Trumps’ announcement on Aug 9 dealt a strong blow to the chips stocks, though some of them rebounded before the market closed on clarifications from the White House. Advanced Micro Devices, Inc. fell nearly 2% but made up 1% before the bell. Micron Technology, Intel and Skyworks Solutions, Inc. stocks closed 2%, 2.5% and 3% lower, respectively.

AMD, Micron, Skyworks and Qualcomm shares have gained 75.7%, 32.8%, 13.8%, 22.7% and 15.6%, respectively, on a year-to-date basis. Intel share have fallen 2.8% in the same time frame. Qualcomm stocks carry a Zacks Rank #5 (Strong Sell). Whereas, Intel, AMD, Micron and Skyworks stocks carry a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank stocks here.

What Next for Huawei?

Huawei has become the second-largest smartphone seller in the world, beating Apple, Inc.and aims to beat the Samsung Electronics (KS:005930) Co. Inc. to reign in the number one position. On Jul 30, it reported 23.2% revenue growth for the first half of the year.

Contemplating trade restrictions, Huawei has already planned an $800 million investment to set up a new factory in Brazil. The company already has a factory in the Sao Paolo state that produces telecommunications equipment for mobile operators. The new facility will ramp up the company’s potential to replicate modem chips and processors.

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has confirmed that will continue to supply to Huawei regardless of the U.S. ban. The company has also been stockpiling components since its chief financial officer Meng Wanzhou got arrested last year. It has also certified non-U.S. suppliers that will support the supply chain in the long run.

Meanwhile, Huawei has two new in-house chips designed by its chip arm, HiSilicon Technologies, named Kirin 985. The other one is the world's first chip made by using the cutting-edge extreme ultraviolet and produced by TSMC. Huawei will use TSMC’s new chip to debut its high-end smartphone, Mate 30 series. The company also launched 5G handsets of the Mate 20 series that can reduce the gap in revenues resulting from the ban on sales in the U.S. market.

Conclusion

The trade restrictions may not cloud Huawei’s revenues but hurt sales of U.S.-based chipmakers. Huawei is progressing fast on replacing its U.S.-based suppliers with Asian alternatives. Japan's Murata Manufacturing and Taiwan's RichWave, have already received increased orders.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.



Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report

QUALCOMM Incorporated (QCOM): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report

Intel Corporation (INTC): Free Stock Analysis Report

Micron Technology, Inc. (MU): Free Stock Analysis Report

Original post

Zacks Investment Research
The Zacks Analyst Blog Highlights: Intel, QUALCOMM, Micron Technology, Advanced Micro Devices, Skyworks Solutions And Apple
 
The Zacks Analyst Blog Highlights: Intel, QUALCOMM, Micron Technology, Advanced Micro Devices, Skyworks Solutions And Apple

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email