Latest news with #ARM-based
Yahoo
4 days ago
- Business
- Yahoo
AT&T Soars 52.2% in a Year: Should You Invest in T Stock Now?
AT&T, Inc. T has gained 52.2% over the past year compared with the Wireless National industry's growth of 27.6%. The stock has also outperformed the Zacks Computer & Technology sector and the S&P 500's growth of 12% and 12.1%, respectively. Image Source: Zacks Investment Research The company has outperformed its peers like Verizon Communications Inc. VZ and T-Mobile US, Inc. TMUS. Verizon has gained 6.1%, while TMUS has increased 36.6% during this period. AT&T expects to continue investing in key areas and adjust its business according to the evolving market scenario to fuel long-term growth, while maintaining a healthy dividend payment and actively pruning debt. The company is adopting prpl Foundation's Life Cycle Management (LCM) to advance its broadband innovation initiatives. The prplware LCM is a software framework that effectively optimizes containerized application deployment on broadband gateways, utilizing the high computing capabilities of ARM-based chipsets. AT&T has steadily deployed the LCM solution over the past few years, and currently, around 12 million broadband gateways are integrated with software with ARM-based chipsets eliminates the high CPU and memory usage issue of legacy containerized applications. The advanced system allows many applications to run concurrently in broadband gateways. This significantly improves efficiency. Moreover, prplware software supports multi-carrier application deployment, empowering service providers to offer several options to clients and developers. AT&T plans to increase its LCM adoption to foster innovation across the company is set to acquire Lumen's fiber connectivity business for $5.75 billion. Following the completion of the buyout, AT&T will acquire 1 million fiber customers and 4 million fiber locations across 11 U.S. states. Integration of Lumen's customer base and fiber deployment capabilities will significantly boost AT&T's competitive edge in the fiber broadband domain. The company is aiming to expand its fiber network to approximately 60 million locations by 2030, almost doubling its current reach. Its expansion will target major metro areas such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, Seattle and more. The company's strategy of continuous innovation, adoption of leading-edge technology, combined with strategic acquisitions, is expected to foster long-term growth. As of March 31, 2025, AT&T had $6.88 billion of cash and cash equivalents with long-term debt of $117.26 billion. At the end of the first quarter, the company had a current ratio of 0.7 compared to the preceding quarter's 0.67. A current ratio of less than 1 suggests that the company might face difficulty paying off its short-term obligations easily. Moreover, a high debt burden makes the company more vulnerable to economic downturns and hinders investment in growth a saturated U.S. wireless market, the spectrum crunch has become a major issue in the U.S. telecom industry. Most of the carriers are finding it increasingly difficult to manage mobile data traffic, which is growing by leaps and bounds. Moreover, intensifying competition with other industry giants like Verizon and T-Mobile is weighing on margins. T-Mobile's aggressive push for 5G expansion, solid cash flow growth and several strategic acquisitions to boost competitive edge is a concern for AT&T. Image Source: Zacks Investment Research AT&T is currently witnessing a downtrend in estimate revisions. Earnings estimates for 2025 have declined 3.27% to $2.07 over the past 60 days, while the same for 2026 has decreased 0.88% to $2.24. The negative estimate revision portrays bearish sentiments about the stock's growth potential. Image Source: Zacks Investment Research From a valuation standpoint, AT&T appears to be trading relatively cheaper compared to the industry but trading above its mean. Going by the price/earnings ratio, the company shares currently trade at 13.04 forward earnings, lower than 13.72 for the industry but above the stock's mean of 10.16. Image Source: Zacks Investment Research With a customer-centric business model, AT&T is witnessing healthy momentum in its postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans. Strong focus on expanding fiber broadband network infrastructure through innovation and strategic acquisition is a positive fierce competition in the wireless market with a relatively fixed pool of customers is putting pressure on pricing. High debt burden remains a concern. Downtrend in estimate revision highlights growing investor skepticism. With a Zacks Rank #3 (Hold), AT&T appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
26-05-2025
- Business
- Yahoo
BofA Maintains Neutral Rating on Amphenol (APH), Lifts PT
On Thursday, BofA analyst Wamsi Mohan raised the price target on Amphenol Corp. (NYSE:APH) to $90 from $85, while keeping a Neutral rating on the shares. T his adjustment followed NVIDIA Corp.'s (NASDAQ:NVDA) announcement of NVLink Fusion at Computex 2025 earlier this week. NVLink Fusion is designed to provide NVLink to cloud service providers/CSPs, which enables them to connect Nvidia GPUs with ARM-based CPUs from QUALCOMM Inc. (NASDAQ:QCOM) and Fujitsu. A team of technicians assembling a complex electrical connector in a factory environment. Mohan believes this development could be a positive catalyst for Amphenol's estimates, although the analyst also suggested that CSPs may continue to favor traditional NVIDIA Grace Blackwell 200 and 300 series products. Amphenol reported strong financial results for Q1 2025, where the company reported record adjusted diluted EPS of $0.63, which was up 58% from $0.40 year-over-year. The acquisition of Andrew Corporation from Commscope Holding Company Inc. (NASDAQ:COMM) is also expected to add ~$0.09 to earnings for the full year 2025. Amphenol anticipates elevated capital spending in Q2 2025 to support growth in the IT datacom market and acknowledged potential impacts from tariffs, which may require strategic management to mitigate costs. Amphenol Corp. (NYSE:APH) designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the US, China, and internationally. While we acknowledge the potential of APH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APH and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
04-04-2025
- Business
- Yahoo
Q4 Earnings Highs And Lows: Amkor (NASDAQ:AMKR) Vs The Rest Of The Semiconductor Manufacturing Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Amkor (NASDAQ:AMKR) and the rest of the semiconductor manufacturing stocks fared in Q4. The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. The 14 semiconductor manufacturing stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 1.6% while next quarter's revenue guidance was 1.8% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 24.7% since the latest earnings results. Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. Amkor reported revenues of $1.63 billion, down 7% year on year. This print fell short of analysts' expectations by 2.1%, but it was still a satisfactory quarter for the company with a solid beat of analysts' EPS estimates but an increase in its inventory levels. 'In 2024, weakness in the automotive and industrial and communications end markets contributed to a full year decline. In contrast, we achieved record revenue in our computing end market with growth in ARM-based PCs and AI devices,' said Giel Rutten, Amkor's president and chief executive officer. Amkor delivered the weakest performance against analyst estimates of the whole group. The stock is down 34.9% since reporting and currently trades at $15.85. Is now the time to buy Amkor? Access our full analysis of the earnings results here, it's free. Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices Kulicke and Soffa reported revenues of $166.1 million, down 3% year on year, outperforming analysts' expectations by 0.7%. The business had a very strong quarter with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 30.9% since reporting. It currently trades at $29.97. Is now the time to buy Kulicke and Soffa? Access our full analysis of the earnings results here, it's free. With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors. FormFactor reported revenues of $189.5 million, up 12.7% year on year, in line with analysts' expectations. It was a softer quarter as it posted a significant miss of analysts' adjusted operating income and EPS estimates. As expected, the stock is down 38.2% since the results and currently trades at $25.43. Read our full analysis of FormFactor's results here. Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials. IPG Photonics reported revenues of $234.3 million, down 21.6% year on year. This print topped analysts' expectations by 3.4%. It was a strong quarter as it also logged a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. IPG Photonics had the slowest revenue growth among its peers. The stock is down 18.3% since reporting and currently trades at $55. Read our full, actionable report on IPG Photonics here, it's free. Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos. Marvell Technology reported revenues of $1.82 billion, up 27.4% year on year. This number beat analysts' expectations by 1.2%. More broadly, it was a slower quarter as it logged revenue guidance for next quarter slightly missing analysts' expectations and an increase in its inventory levels. The stock is down 38.4% since reporting and currently trades at $55.59. Read our full, actionable report on Marvell Technology here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
11-02-2025
- Business
- Yahoo
Analyst Bullish on Qualcomm Inc (QCOM) Amid These AI Growth Catalysts
We recently published a list of . In this article, we are going to take a look at where Qualcomm Inc (NASDAQ:QCOM)) stands against other AI stocks to watch amid DeepSeek impact. The launch of DeepSeek is drawing new battle lines in the AI competition and many analysts believe the technology investment landscape won't be the same again after the Chinese breakthrough. Talking to CNBC, Databricks CEO Ali Ghodsi said that DeepSeek would result in 'distillation' where companies will make smaller, more efficient models based on the technology: 'So we're going to just see distillation happening left and right. It's already happening—like, there's so many versions of DeepSeek that have been reproduced and redone just in the last week as we speak. So this distillation is going to just create so much competition at the LLM or the AI layer.' In the coming days, it would be interesting to see how American AI companies tackle this challenge and come up with new products or breakthroughs to maintain their dominance. READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In For this article, we picked 10 AI stocks that are trending on the back of latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).Oliver Blanchard from The Futurum Group in a latest program on Schwab Network said he likes Qualcomm Inc (NASDAQ:QCOM) as an AI play. 'I think that on the device side—so basically anything that's Edge and device, so endpoint, that's mobile, PC, XR, automotive—I really like Qualcomm, always, just because they're so good at the ARM-based, low-power, high-output AI chips in all of these segments.' Fidelity Dividend Growth Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter: 'At the stock level, QUALCOMM Incorporated (NASDAQ:QCOM) was a major detractor, returning about -14% the past three months. The firm develops and manufactures semiconductors, software and services used in mobile phones, and other wireless technologies. On July 31, the company reported second-quarter results, and issued guidance for Q3, both of which solidly exceeded expectations. The stock slid, however, on concerns about a slow recovery for smartphones. Additionally, shares dipped this quarter in step with other semiconductor-related names.' Overall, QCOM ranks 7th on our list of AI stocks to watch amid DeepSeek impact. While we acknowledge the potential of QCOM, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than QCOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
10-02-2025
- Business
- Yahoo
Amkor (NASDAQ:AMKR) Misses Q4 Analysts' Revenue Estimates, Stock Drops
Semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) fell short of the market's revenue expectations in Q4 CY2024, with sales falling 7% year on year to $1.63 billion. Next quarter's revenue guidance of $1.28 billion underwhelmed, coming in 14.1% below analysts' estimates. Its GAAP profit of $0.43 per share was 16.2% above analysts' consensus estimates. Is now the time to buy Amkor? Find out in our full research report. Revenue: $1.63 billion vs analyst estimates of $1.66 billion (7% year-on-year decline, 2.1% miss) EPS (GAAP): $0.43 vs analyst estimates of $0.37 (16.2% beat) Adjusted EBITDA: $302 million vs analyst estimates of $287.2 million (18.5% margin, 5.1% beat) Revenue Guidance for Q1 CY2025 is $1.28 billion at the midpoint, below analyst estimates of $1.48 billion EPS (GAAP) guidance for Q1 CY2025 is $0.09 at the midpoint, missing analyst estimates by 70.6% Operating Margin: 8.3%, in line with the same quarter last year Free Cash Flow Margin: 22%, up from 19.2% in the same quarter last year Inventory Days Outstanding: 20, in line with the previous quarter Market Capitalization: $6.00 billion 'In 2024, weakness in the automotive and industrial and communications end markets contributed to a full year decline. In contrast, we achieved record revenue in our computing end market with growth in ARM-based PCs and AI devices,' said Giel Rutten, Amkor's president and chief executive officer. Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors. The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Amkor's 9.3% annualized revenue growth over the last five years was decent. Its growth was slightly above the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Amkor's recent history marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.6% over the last two years. This quarter, Amkor missed Wall Street's estimates and reported a rather uninspiring 7% year-on-year revenue decline, generating $1.63 billion of revenue. Company management is currently guiding for a 6.6% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and implies its newer products and services will fuel better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Amkor's DIO came in at 20, which is 10 days below its five-year average. Flat versus last quarter, there's no indication of an excessive inventory buildup. We were impressed by how significantly Amkor blew past analysts' EPS expectations this quarter. On the other hand, its revenue guidance for next quarter missed significantly and its revenue fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 7.6% to $22.51 immediately following the results. Amkor underperformed this quarter, but does that create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
