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. As a result, the Philadelphia Semiconductor Index increased by approximately 30% in 2014, as compared to a 12% growth in the S&P 500 index. Despite recent signs of weakening PC demand, SIA believes that the semiconductor market is well-positioned for continued growth in 2015 and beyond.
Below is a weekly update for some of the technology companies that Trefis covers.
See Our Complete Analysis for These Companies Here
Applied Materials
Applied Materials announced that its venture capital arm, Applied Ventures LLC, has participated in a Series B financing round for RayVio Corporation, an advanced UV light emitting diode solutions company developing proprietary semiconductor-based technology for manufacturing solid state ultraviolet LED products and applications. (Read Press Release)
Applied’s stock traded close to $24 last week. The company has a current market cap of $29.5 billion. Our price estimate of $22 for the company is marginally 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 (ends in October), our estimate for GAAP earnings per share stands at $1.21, as compared to the consensus estimate of $1.25.
Broadcom
Broadcom announced its next generation addition to the StrataDNX family of switch system-on-chip (SoC) devices for carrier and data center networks, last week. The company’s stock price remained relatively stable, fluctuating between $44 – $45, 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.
Cree
Cree expanded its $1.5 million commitment to provide LED lighting for new Habitat for Humanity homes built in the U.S. by offering the new Cree LED Bulb, making whole-home LED lighting possible for Habitat homeowners. The company also demonstrated that its best-in-class SiC MOSFET and diode technologies enable previously unattainable levels of power density in string solar inverter products. (Read Press Releases)
Our price estimate of $37 for the company is in line with the current market price, which translates into market cap of $4.3 billion. We estimate Cree will report revenue and net income of $1.95 billion and $120 million, respectively, for calendar year 2015. For fiscal year 2015 (fiscal year ends in June) we forecast non-GAAP EPS of $1.72.
F5 Networks
F5 Networks introduced software solutions to expand its offerings and simplify service delivery across physical, virtual, and cloud infrastructures, last week. The company also announced the next version of its BIG-IQ, an intelligent management framework that provides a single point of integration for administering and orchestrating security and application delivery services. F5 has teamed up with innovative telecom and internet service provider Joors to bring new business models and services to emerging markets. (Read Press Releases)
F5's stock traded between $113 – $115 last week. The company has a current market cap of $8.4 billion. Our price estimate of $127 for F5 Networks is approximately 10% higher than the current market price. For calendar year 2015, we forecast F5 to report revenue and net income of $1.79 billion and $332 million, respectively. For fiscal year 2015 (fiscal year ends in September), our non-GAAP EPS estimate stands at $6.39, which is in line with the market consensus.
Intel
Last week, Intel collaborated with Cadence Design Systems to deliver a 14nm library characterization reference flow for customers of Intel Custom Foundry, and also announced a partnership with TAG Heuer and Google to launch a Swiss smartwatch. The company declared a quarterly dividend of 24 cents per share payable on June 1, 2015. (Read Press Release)
After a steep decline in its price the week prior (Intel lowered it Q1 2015 guidance which led to an 8% decline in its stock price), Intel’s stock stabilized around $31 last week. The company has a current market cap of $147 billion. Our $34.29 valuation for Intel is at an approximate 10% premium to the current market price. 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 launched new NOR Flash and low-power DRAM products to meet the increasing memory requirements for the automotive market segment. (Read Press Release) The company's stock price traded between $28 – $29 last week. Our valuation of $32 for Micron is approximately 10% above the current market price. Micron has a market cap of around $30 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.
Qualcomm
Qualcomm announced its support for Microsoft Windows 10 for Internet-of-Things devices and Internet of Everything (IoE) applications with the DragonBoard 410c development board. (Read Press Release) The company’s stock traded between $69 - $70 last week (market cap of approx $115 billion). Our valuation of $72 for the company is slightly above 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.
Nvidia
Nvidia announced new technology and an updated GPU roadmap at its GPU Technology Conference last week. (Read Our Article) Our $23 valuation for Nvidia is almost in line with the current market price. The company's stock traded close to $23 last week, which translates into current market cap of $12.8 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 have yet to update our model for the fiscal 2015 earnings release.
Texas Instruments
Texas Instruments launched new low-cost Digital Power BoosterPack and powerSuite, new wide VIN four-switch buck-boost controller and a new STEM Behind Health, which provides students with an interactive hands-on way to explore the math and science concepts behind diseases still in need of a cure. Texas Instruments' stock currently trades around $58, which translates into market cap of approximately $62billion. Our price estimate of $49 for the company is at an approximate 20% 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.
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