Latest news with #StacyRasgon
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a day ago
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- Yahoo
Qualcomm (QCOM) Q2 Earnings Preview: What to Expect From Upcoming Report
July 29- Qualcomm (NASDAQ:QCOM) will reveal Q3 FY2025 results on July 30 after the market close. Wall Street expects adjusted EPS of $2.71, a 16.3% rise from a year ago, and revenue of $10.34 billion, up 10.1%. Investors eye the report amid worries that Apple (NASDAQ:AAPL) will shift to in?house modem chips next year, potentially trimming Qualcomm's handset chip sales. Smartphone market pressures and tariff risks in China also weigh on sentiment. Warning! GuruFocus has detected 6 Warning Signs with QCOM. Still, analysts note Qualcomm's growing footprint in IoT, automotive and edge AI. Bernstein's Stacy Rasgon keeps a Buy rating with a $185 target, calling Qualcomm heavily out of favor yet undervalued given its diverse product lineup and expected double?digit earnings growth. He says it's worth keeping on investors' radar. KeyBanc envisions wider semiconductor power with the help of demand in A as well as new product ramps. It predicts positive prospects of Qualcomm in Q3 but warns that second part of 2025 can have backdrafts due to Apple moving to other modems and sluggish Android market in China. The results will help to understand what degree of offset of challenges related to the handset is possible to be achieved by the divisions, which are engaged with non-smartphone, and whether Qualcomm will be able to quality its growth trend up to the end of the year. Based on the one year price targets offered by 30 analysts, the average target price for Qualcomm Inc is $177.50 with a high estimate of $225.00 and a low estimate of $140.00. The average target implies a upside of +10.21% from the current price of $161.05. Based on GuruFocus estimates, the estimated GF Value for Qualcomm Inc in one year is $160.62, suggesting a downside of -0.27% from the current price of $161.05. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Broadcom is no longer the 'poor man's Nvidia' in the AI race
Artificial intelligence (AI) continues to be a key theme of Big Tech earnings, as Alphabet (GOOG, GOOGL) kicked off "Magnificent Seven" earnings with very high additional AI capital expenditure (CapEx), a positive sign for AI chipmakers. Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, and Stacy Rasgon, managing director and senior analyst at Bernstein, share their thoughts on two major AI chip players: Nvidia (NVDA) and Broadcom (AVGO). To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Related videos How to qualify for two state pensions – and get increases for life How 15,000 family businesses could collapse in pensions tax raid How to target an ISA that spits out £1,000 of passive income a month 10 shares I wouldn't want to hold in a stock market crash 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
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5 days ago
- Business
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Should You Buy the Post-Earnings Plunge in Intel Stock?
Intel (INTC) shares are down nearly 10% at the time of writing on July 25 after the semiconductor firm reported weaker-than-expected profit for its fiscal Q2. Investors are bailing on INTC this morning because its earnings outlook for the current financial quarter came in shy of Street estimates as well. More News from Barchart This Self-Driving Car Stock Is Surging on a Major Nvidia Boost UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip. UNH Stock Falls as UnitedHealth Confirms DOJ Probe. How Should You Play Shares Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Including today's plunge, Intel stock is down roughly 25% versus its year-to-date high in February. Is Intel Stock Worth Buying After Q2 Earnings? Speaking with CNBC on Friday, Bernstein's senior analyst Stacy Rasgon argued Intel's Q2 release was far from 'all bad.' The chip company managed to beat revenue expectations in its second quarter and issued top-line guidance that's also 'decent for now' – according to the semiconductor industry expert. However, INTC shares remain a 'wait-and-see' story until the management accelerates production and record customer traction for the next-gen processes (18A and 14A), he added on 'Closing Bell: Overtime.' Bernstein maintained its 'Hold' rating on Intel stock after the company's second-quarter earnings report. Its $21 price target barely suggests any upside from current levels. It May Still Be Reasonable to Own INTC Shares Despite continued weakness in the recently concluded quarter and Rasgon's cautious stance, Intel shares are not entirely void of reasons to invest. For starters, INTC stock is currently going for a price-sales (P/S) multiple of 1.93x only, notably below the average for the broader semiconductor industry. Plus, Intel's current chief executive Lip-Bu Tan pulled the plug on the company's planned fab projects in both Poland and Germany on Friday. Additionally, he slammed the breaks on INTC's commitment to building an advanced facility in Ohio, adding that winning new customers and the demand outlook at large will determine the pace of reacceleration in construction. Under his leadership, the company is committed to lowering the global headcount by 15%, streamlining management layers by as much as 50%, and ending this year with 75,000 employees – all of which could translate to a higher stock price for Intel over time. Wall Street Sees Material Upside in Intel Other Wall Street firms aren't particularly constructive on Intel stock either. The consensus rating on INTC shares currently sits at 'Hold' only, but the mean target of about $22.86, nonetheless, indicates potential upside of some 11% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
5 days ago
- Business
- Yahoo
Intel needs a 'hero customer' to turn things around
Intel (INTC) stock is plunging after the company released earnings. Despite reporting a "decent beat," Bernstein managing director and senior analyst Stacy Rasgon said that Intel needs a "hero customer" to recover its customer base. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Intel sharing plans to cut its workforce by about 20% by the end of the year and trim its operating expenses, shares down 9%. Stacy Rasgon is Bernstein senior managing director and senior analyst. Stacy, um, joining us now, you've got a market perform rating on this one, $21 price target. Um, and you you said in your note reacting here, the earnings were actually not bad, but do the earnings matter? Like what matters to investors when it comes to Intel right now? Yeah. And that the numbers don't don't I mean that was my take even into the print, like who cares about the numbers? Right? The question is on, you know, the strategy and what are they going to do? And, you know, is their process roadmap any good or is it not? And are there going to be foundry customers and a and a foundry business that is robust or is there not? Like those are the questions that matter. And we got a little bit of color on that last night and that's that's part of the reason the stock is doing so poorly today. Like that the numbers overall were were okay. It was actually a a a decent beat in in in the quarter, um, they missed earnings, but there were some one-time charges in there. The revenue guidance was was pretty solid. Um, again, earnings margins were a little lower, but I mean, who cares? The biggest issue was was around their, um, process roadmap. Um, particularly their next generation process. I'm going to throw some numbers out, but they they name their processes after nominally the size of the transistors. The next the one they're getting ready to ramp is called 18A. Right. This is the one that the prior CEO Pat Gelsinger sort of, you know, bet the company on effectively, right? Now it's turning out like 18A is is not it's it's 14A with which is I I guess the the next one that's going to potentially save them. Um, that is the node that if they can build a foundry business that they will build around it and it didn't sound like they were entirely confident. And so they actually put some risk factors, new ones in their in their filings, and they talked to us on the call. They basically said we cannot afford to develop 14A if it is only for us. We need external customers, and if we can't get external customers, we may have to stop development on our forward process node. So it didn't sound like that they were incredibly confident on their ability like to to get that node developed and ramped and frankly, to my mind now, the call on the stock is is pretty simple. Can they get a hero customer on that node, which they don't have a process for yet? Can they get a hero customer in the next like 12 to 18 months, a customer that is big enough to make that node viable? And if they can, maybe there's a story here. And if they they can't, then it's it's a problem. Yeah. And right now we have no basis to make that decision one way or the other, and hence the stock is is selling off pretty sharply today. Yeah, I mean, I There was a definite change in town. Yes. I know it just for to zoom out a little bit for people who are haven't been as steeped in this, like, if you look at the numbers here, the annual sales of this company have gone down by something like $20 billion over the past few years. So we've seen this shrinking. Yeah. Um, what is the place of Intel ultimately in the semiconductor universe? What role does it play? Yeah. So let me talk about their products and then talk about like the sort of future, right? So the current products they they sell mostly chips for PCs and chips for servers. And chips for PCs is is is fine, but PCs, I mean I mean they're you know they they had spiked during COVID and and we're in a we've been in a hangover position, but that that that that market's not really growing and and they're losing share. And then in data center, I mean they've they've been decimated. They have like sort of three layers of share loss. They're losing share in the chips that they make to their competitor like AMD. Um, that architecture that both of them make is something called X86. X86 CPUs and servers are losing share to another architecture, which is called ARM. And you've got big customers like the hyperscalers that are starting to build their own chips. And then CPUs in the data center in general are losing share to to GPUs to players like like Nvidia, right? And so they don't really have an answer to any of those. And again, their data center revenues have have collapsed over the last several years because of this. So in terms of the products that they sell, they're they're certainly less relevant than they were and there are other competitors now that are that are much bigger, um, and and and still growing. Yeah. Um, now in terms of the future, I mean, look, people would say, look, Intel's the only sort of US-based source of of purportedly leading edge semiconductor manufacturing, which is a huge sort of geopolitical and and strategic, um, uh, uh, effort of the So there's this view that we need Intel. And I guess that's true, except that Intel is now cutting back on their efforts. They're actually delaying their big buildout in Ohio even further. They're cutting their capex, they're cutting their their their head count, and you've got competitors like like like TSMC, for example, who are actually building a large amount of capacity here in the US and Right. I could make the argument that the longer Intel waits and the longer it takes them to ramp this stuff up, the more capacity is getting built here in the US by other players, maybe the the less we need them over time. And now they're basically saying, you know, if we if we can And by the way, it's smart, you can't build these factories with no customers. That was the problem that that Pat Gelsinger. That was his strategy didn't work. But I mean, if if you now they're basically saying if we can't get customers, we we may have to give up and sort of that puts every puts the onus even more on TSMC. But the longer that they wait, like the you could make the argument that maybe the less we need them, like. But I I don't know, I think again, it's this kind of like dichotomy and this uncertainty that that that that's weighing on it. Related Videos Intel stock sinks: CEO prioritizes cost-cutting over innovation Intel Q2 beat: Company's turnaround still a 'longer-term story' Intel Q2 revenue tops estimates, will slash workforce Intel Plans to Slash Workforce by 15% | Closing Bell Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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5 days ago
- Business
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Bernstein Lifts AMD Price Target to $140—But Still Holds Rating
Advanced Micro Devices, Inc. (NASDAQ:) is one of the . On July 21, Bernstein SocGen Group analyst Stacy Rasgon raised the price target on the stock to $140.00 (from $95.00) while maintaining a 'Hold' rating. Despite the hold rating, Rasgon has highlighted several positive catalysts working in favour of the stock. In particular, the analyst noted that the lifted ban on AI chip sales to China, upcoming MI350 product launch, and gaming recovery have been good for the company. This is why Rasgon updated his estimates for AMD earnings, which includes Q2 adjusted EPS of 49 cents on revenue of $7.52 billion, as compared to a prior estimate of 47 cents and $7.4 billion. The analyst also updated Q3 estimates, projecting $8.43 billion in revenue and $1.20 in earnings per share. He also updated his full-year 2025 estimate to $ $32.0 billion in revenue and $3.89 earnings per share. An experienced financial analyst pouring over financial statements and market data. Regardless, the firm still remains cautious due to high valuation and expected risk of client channel flush and tariff pull-forward reversal. Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
