Latest news with #SamikChatterjee
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4 days ago
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Alphawave Talks Boost Qualcomm Stock Ahead
Qualcomm's (NASDAQ:QCOM) stock got an early boost todayup just over 2% before markets openedafter it snagged a fresh deadline to firm up its roughly $1.4 billion bid for U.K. chip IP specialist Alphawave. Earlier, QCOM had dipped about 1.35% during normal hours, but word that Alphawave's put up or shut up clock has been reset to June 2 (the third push-out since late April) lit a spark under shares. Alphawave's valuation clocks in at about 1.1 billionaround $1.4 billionand its own stock jumped 8% on the news, even though no official offer has landed yet. Warning! GuruFocus has detected 5 Warning Signs with QCOM. Why it matters: Alphawave's tech is a linchpin for AI processor connections, which lines up perfectly with Qualcomm's big-picture AI roadmap. As J.P. Morgan's Samik Chatterjee points out, snapping up Alphawave would slot neatly alongside QCOM's Nuvia buy, beefing up its data-center connectivity chops and turbocharging its CPU and AI inference play. For investors, the potential payoff is clearseal this deal, and Qualcomm could speed up its push into next-gen data centers and AI hardware, opening fresh revenue channels just as demand for high-speed, low-latency chips ramps up. Now all eyes are on June 2: will Qualcomm finally make a formal bid, or will Alphawave buy more time? Either way, today's extension keeps the takeover dramaand the stock's momentumright on track. The chart above shows Qualcomm Inc. (NASDAQ:QCOM) with a 12-month average price target of $177.64 as of May 27, 2025, representing a projected upside of 22.19% from its current level. The highest analyst target stands at $270, suggesting strong bullish sentiment, while the lowest forecast is $140, indicating downside risk. The intrinsic or GF Value is pegged at $160.10, hinting that the stock may be slightly undervalued based on current fundamentals. Overall, analysts anticipate moderate growth, with a wide range reflecting varied views on the chipmaker's prospects. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
Alphawave Talks Boost Qualcomm Stock Ahead
Qualcomm's (NASDAQ:QCOM) stock got an early boost todayup just over 2% before markets openedafter it snagged a fresh deadline to firm up its roughly $1.4 billion bid for U.K. chip IP specialist Alphawave. Earlier, QCOM had dipped about 1.35% during normal hours, but word that Alphawave's put up or shut up clock has been reset to June 2 (the third push-out since late April) lit a spark under shares. Alphawave's valuation clocks in at about 1.1 billionaround $1.4 billionand its own stock jumped 8% on the news, even though no official offer has landed yet. Warning! GuruFocus has detected 5 Warning Signs with QCOM. Why it matters: Alphawave's tech is a linchpin for AI processor connections, which lines up perfectly with Qualcomm's big-picture AI roadmap. As J.P. Morgan's Samik Chatterjee points out, snapping up Alphawave would slot neatly alongside QCOM's Nuvia buy, beefing up its data-center connectivity chops and turbocharging its CPU and AI inference play. For investors, the potential payoff is clearseal this deal, and Qualcomm could speed up its push into next-gen data centers and AI hardware, opening fresh revenue channels just as demand for high-speed, low-latency chips ramps up. Now all eyes are on June 2: will Qualcomm finally make a formal bid, or will Alphawave buy more time? Either way, today's extension keeps the takeover dramaand the stock's momentumright on track. The chart above shows Qualcomm Inc. (NASDAQ:QCOM) with a 12-month average price target of $177.64 as of May 27, 2025, representing a projected upside of 22.19% from its current level. The highest analyst target stands at $270, suggesting strong bullish sentiment, while the lowest forecast is $140, indicating downside risk. The intrinsic or GF Value is pegged at $160.10, hinting that the stock may be slightly undervalued based on current fundamentals. Overall, analysts anticipate moderate growth, with a wide range reflecting varied views on the chipmaker's prospects. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
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Hewlett Packard, NetApp Better Positioned To Sidestep Tariff Headwinds Ahead of Earnings: Analyst
JP Morgan analyst Samik Chatterjee shared earnings previews for several prominent hardware companies, cautioning that these firms may contend with ongoing demand uncertainty and renewed tariff risks in their upcoming earnings reports. Chatterjee sees another round of conservative results in the coming week, with stock movements more likely to reflect how investors interpret management's efforts to either de-risk the second half of the year or contain expectations for potential full-year downside, especially after stronger-than-expected performances in the first half. In contrast to HP Inc. (NYSE:HPQ) and Dell Technologies Inc. (NYSE:DELL), the analyst sees Hewlett Packard Enterprise Company (NYSE:HPE) and NetApp, Inc. (NASDAQ:NTAP) as better situated to withstand anticipated headwinds in their upcoming analyst anticipates that DELL's demand drivers, particularly from less macro-sensitive AI spending and its stronger-than-expected AI market share, will effectively offset broader macroeconomic moderation as they look beyond the immediate quarterly results. Conversely, the analyst expects HPQ and HPE to be more sensitive to macro trends throughout the year. The analyst also notes that while NTAP shows greater resilience, its revenue upside is limited, as it relies on market share gains to counteract any macro weakness. Here are the analyst's take on some key hardware stocks: Dell Technologies Inc.: The analyst reiterated the Overweight rating on the stock, raising the price forecast from $108 to $111. Chatterjee projects the upcoming first-quarter report to look solid on the surface, with strong PC and server demand boosting revenue and margins benefiting from a lower-than-expected mix of AI server sales. However, the analyst cautions that the tariff landscape remains a key concern. Chatterjee writes that this issue will likely be reflected in second-quarter guidance and possibly in the fiscal 2026 outlook, as the company's current baseline assumes higher tariff levels than previously expected, even with reciprocal tariff pauses in place. The analyst projects revenue of $23.6 billion, reflecting a 6% year-over-year increase. He also predicts gross margins to come in at 22.5%, with operating margins forecasted at 7.9%, pointing to modest strength in profitability metrics. Hewlett Packard Enterprise Company: Chatterjee sees the stock as the most favorably positioned among hardware names going into earnings, at least on a near-term basis. The analyst notes that the company's guidance already factors in a slowdown in AI server revenue and assumes a higher tariff burden than peers. Additionally, he highlights potential upside from stronger networking demand, supported by recent positive results from companies like Cisco Systems, Inc. (NASDAQ:CSCO), Extreme Networks, Inc., and Juniper Networks, Inc. (NYSE:JNPR). Chatterjee estimates revenue at $32.4 billion, reflecting 8% year-over-year growth. He forecasts gross margins at 28.7% and operating margins at 9.5%. HP Inc.: Per the analyst, the company is in a strong position to post a solid second-quarter result, supported by stronger-than-expected revenue as PC demand was likely pulled forward ahead of potential tariff-driven price hikes. Chatterjee notes that this comes with limited margin pressure, helped by delayed policy effects, inventory management, and other mitigating factors. However, he cautions that macroeconomic uncertainty could limit how much of these near-term gains carry into future quarters, as the company faces two key challenges: navigating higher tariffs than previously guided for and uncertainty around PC demand in the second half of fiscal 2025 following earlier-than-usual buying. The analyst reiterated the Overweight rating on the stock, raising the price forecast from $29 to $30. NetApp, Inc.: The analyst expects NetApp to see stable demand, supported by new product launches and delayed deals from the previous quarter, leading to a slight revenue beat in F4Q25E. However, FY26 revenue growth is projected to be in the low-to-mid single digits, below long-term averages, due to a muted macro environment and U.S. Public Sector headwinds. Despite this, EPS is anticipated to exceed consensus due to resilient gross margins (improved product margins and higher Public Cloud revenue mix) and better operating discipline. This positive outlook is expected to drive NTAP's valuation multiple back to recent year averages (14x-15x) from the current 13x. Read Next:Photo via Shutterstock Date Firm Action From To Mar 2022 Barclays Maintains Underweight Oct 2021 Credit Suisse Maintains Neutral Sep 2021 JP Morgan Downgrades Overweight Neutral View More Analyst Ratings for HPQ View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? HP (HPQ): Free Stock Analysis Report DELL TECHNOLOGIES (DELL): Free Stock Analysis Report NETAPP (NTAP): Free Stock Analysis Report This article Hewlett Packard, NetApp Better Positioned To Sidestep Tariff Headwinds Ahead of Earnings: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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Yahoo
23-05-2025
- Business
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Keysight Technologies, Inc. (KEYS) Beats Earnings, JP Morgan Raises Price Target to $177
We recently published a list of . In this article, we are going to take a look at where Keysight Technologies, Inc. (NYSE:KEYS) stands against other AI stocks on analysts' radar. The recently imposed US sanctions on chip use have angered China. In recent news, the country has stated that it may take legal action against any individual or organization who are found assisting or implementing U.S. measures that advise companies against using their advanced semiconductors. According to the U.S. published guidance, companies risk violating export controls if found using Ascend AI chips from Shenzhen-based Huawei. In response, China's commerce ministry said there could be 'corresponding legal liabilities' against those involved in implementing U.S. measures and that it constitutes 'discriminatory restrictive measures' against Chinese firms. READ ALSO: and . The sanctions are seemingly a new strategy adopted by the US to curb China's progress in the AI arms race. The world is yet to watch the success of this strategy as opposed to the AI diffusion rule imposed earlier, which the world came to know had failed miserably after the arrival of DeepSeek. Even Jensen Huang has deemed the AI diffusion rule to be a failure. 'All in all, the export control was a failure. The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed.' In fact, the sales block advanced AI chips to China, forcing companies to buy semiconductors from Chinese designers. It also pushed the country to invest aggressively in a robust supply chain that doesn't rely on manufacturers outside the country. For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (). A technician examining a complex circuit board in a semiconductor development Technologies, Inc. (NYSE:KEYS) is a global technology company that provides electronic design and test solutions. On May 21, JP Morgan analyst Samik Chatterjee maintained an 'Overweight' rating on the stock and increased the price target to $177 from the previous $172. Keysight announced strong second fiscal quarter performance, beating revenue and earnings estimates. The company also delivered third-quarter guidance that exceeded market forecasts, upgrading its full-year outlook for fiscal year 2025. These factors imply how the company is capable of reaching its long-term revenue growth targets despite challenging macroeconomic conditions. In particular, Keysight has witnessed strong growth in the Wireline segment on the back of advanced equipment deployment. This growth is further helping offset challenges in areas such as General Electronics and Autos. Tariff-related cost headwinds do remain, but strategic pricing actions and the acquisition of Spirent are seen as a positive move supporting future growth. Other analysts have also highlighted Keysight's diversified supply chain and strategic investments in AI infrastructure playing a strong role against such tariffs. Analyst firms such as Barclays are also bullish on the stock, particularly its continued momentum in Keysight's AI and defense sectors. Overall, KEYS ranks 11th on our list of AI stocks on analysts' radar. While we acknowledge the potential of KEYS as an investment, 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 KEYS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
09-05-2025
- Business
- Yahoo
Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast
Super Micro Computer (NASDAQ:SMCI) stock price dropped on Wednesday after the company reported worse-than-expected third-quarter financial results on Tuesday. Wall Street analysts rerated the stock. Needham analyst Quinn Bolton reinstated Super Micro Computer with a Buy and a $39 price target. Wedbush analyst Matt Bryson reiterated Super Micro Computer with a Neutral rating and lowered his price target to $30 (from $40). JP Morgan analyst Samik Chatterjee gave Super Micro Computer a neutral rating and a price target of $35 (down from $36).Needham: Super Micro posted third-quarter revenue of $4.6 billion, -19.0% Q/Q and +19.5% Y/Y, in line with the company's preliminary announcement but well below previous guidance (midpoint at $5.5 billion). The weakness was due to customers waiting and evaluating next-gen AI platforms (Blackwell), which led to delayed commitments. The quarterly adjusted gross margin came in at 9.7%, below the Street's 10.1% estimate. Margins were negatively affected by higher inventory reserve charges on older Hopper systems, lower volume, and accelerated new-product costs. The quarterly adjusted EPS was $0.31, which is in line with the preliminary announcement but well below the previous guidance (midpoint at $0.54). The miss was driven by lower revenue and margins. The company guided fourth-quarter revenue to $6.0 billion at the midpoint, +30.4% Q/Q and +13.0% Y/Y, well below Bolton's estimate of $7.0 billion and the Street's estimate of $6.59 billion. The quarterly adjusted EPS should come in at $0.45 at the midpoint, below Bolton's prior estimate of $0.74 and the Street's estimate of $0.64. Super Micro has been at the forefront of liquid cooling technology, and the announcement of DLC-2 further solidifies its leadership. Management highlighted product transitions from Hopper to Blackwell and tariff uncertainty as key contributors to near-term weakness. Despite near-term headwinds, Bolton became incrementally more positive for the company as it filed its 2024 10-K and 2025 10-Qs and added to its management bench. The analyst found the valuation extremely attractive for a company targeting AI/HPC end markets and being at the forefront of liquid-cooled data centers. Wedbush: Bryson noted that GB200 and B200 availability was limited early in the quarter, with initial parts primarily shipping to select Nvidia Corp (NASDAQ:NVDA) accounts. This situation has been largely rectified, supporting a rebound in the next quarter. Super Micro is effectively guiding for a slight dip in gross margins on older products that it likely needs to discount to sell. The analyst noted OEMs were pushed to take Hopper, given B200 shortages. He said Super Micro's choice to step away from guiding for a gross margin rebound was properly pragmatic, particularly given uncertainty around the US administration's next steps. In the intermediate to longer term, Bryson expects better pricing and margins on initial B200 servers in light of the tight supply. Super Micro's diversified manufacturing presence could allow it to better navigate US policy than some of its peers. Bryson projected fourth-quarter revenue of $5.95 billion and adjusted EPS of $0.45. JP Morgan: Super Micro posted results primarily in line with the pre-announcement that had represented a roughly $900 million miss on revenue and an approximately 200 bps+ miss on gross margins to the earlier stated outlook for the fiscal third quarter. With the company pre-announcement implying that the miss was led by one-off factors like customer platform decisions and inventory write-downs, expectations were for a sharper earnings rebound through revenue and margins. However, the update from the company about fiscal fourth-quarter expectations highlights customer push-out of deployments in fiscal third-quarter was not limited to one or two customers and represents an ongoing challenge about customers deciding between multiple platforms as well as data center readiness to accept shipments as planned. Lower cost inventory-related headwinds to gross margins are still not entirely behind the company, with up to 100 bps of gross margin impact in the fiscal fourth quarter, driving guidance for ~10% gross margins. There remains the potential for further risks to gross margin if the company does not manage to sell its Hopper inventory. On the business drivers, the company continued to highlight leadership relative to the time to market for the latest technology-based servers in the high-growth AI servers market, as well as the expected launch of Data Canter Building Block Solutions (DCBBS), featuring their next-generation Direct Liquid Cooling (DLC 2.0) capabilities. Chatterjee projected fourth-quarter revenue of $6 billion and adjusted EPS of $0.44. Price Action: SMCI stock closed at $32.48 on Wednesday. Read Next:Photo courtesy: CryptoFX via Shutterstock Date Firm Action From To May 2021 Susquehanna Maintains Positive May 2021 Northland Capital Markets Maintains Outperform Jun 2020 Northland Capital Markets Initiates Coverage On Outperform View More Analyst Ratings for SMCI View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? SUPER MICRO COMPUTER (SMCI): Free Stock Analysis Report This article Super Micro Impacted By AI Server Delays And Nvidia Supply Limits, Analysts Lower Forecast originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
