Semiconductor stocks moving on news Monday included Nvidia (NVDA), Intel (INTC) and several Apple (AAPL) iPhone chip suppliers. XRBC Capital Markets raised its price target on graphics-chip maker Nvidia to 310 from 300 and reiterated its outperform rating. Nvidia shares dropped 4.7% to 239.12 during an overall down day on the stock market today. The prospects of a trade war between the U.S. and China battered chip stocks. RBC analyst Mitch Steves expressed increased confidence in Nvidia's earnings growth potential. Nvidia's business from data center operators looks solid, he said. "We remain bullish on overall data center trends and see no material slowdown in sight," Steves said in a report Sunday. The market for graphics processors for gaming PCs also remains strong, he said. Nvidia is currently ranked No. 28 on the IBD 50 list of top-performing growth stocks. It is one of five chip-industry players on IBD's flagship stock list. Intel Rating LoweredNomura Instinet downgraded Intel stock to neutral from buy on concerns about the company's search for a new chief executive. Chief Financial Officer Robert Swan was elevated to interim chief executive on Thursday after Brian Krzanich resigned from the top post following an improper relationship with an Intel employee. "CEO Krzanich's departure is disappointing on multiple levels," Instinet analyst Romit Shah said in a report Monday. "We believe the lack of leadership will only add to the already growing uncertainty about Intel's long-term franchise." Shah suggested that Intel hire an outsider as chief executive, even though it has never done so before. He lowered his price target on Intel stock to 55 from 60. Intel shares fell 3.4% to 50.71 on Monday. Apple iPhone Chip Supplier RaisedInvestment bank Cowen raised its price target on smartphone chip supplier Qorvo (QRVO) to 80 from 75, but kept its market perform rating. Qorvo slid 2.1% to 80.36 on Monday. Qorvo and Skyworks Solutions (SWKS) have the potential to report upside in the June quarter as smartphone makers Apple, Samsung and Huawei increase their handset production, Cowen analyst Karl Ackerman said in a report Sunday. Meanwhile, Susquehanna analyst Christopher Rolland said Monday that Cirrus Logic (CRUS) won a contract with Apple to provide active noise cancellation technology in second-generation AirPods wireless earbuds. He rates Cirrus Logic stock as positive. The new contract is likely to increase Cirrus Logic's revenue by 4%, but provide a more than 50% boost to earnings per share, he said. Also, Bank of America Merrill Lynch upped its price target on Advanced Micro Devices (AMD) to 20 from 17 and kept its buy rating. AMD shares fell 4.4% to 15.11. U.S.-China Trade Disputes Could Impact Chip FirmsA report on Monday by Moody's Investors Service said the growing trade conflicts between the U.S. and China could impact the semiconductor sector. If export restrictions are limited, they will have a medium impact on U.S. integrated circuit companies, Moody's said. But if the restrictions are severe, they would have a high impact on chip vendors, it said. Many electronics products are assembled in China, including Apple's iPhone. Trade restrictions will have low-to-medium impact on U.S. semiconductor-equipment vendors, Moody's said. Chip companies with the most sales exposure to China include Skyworks and Qualcomm (QCOM), CFRA Research analyst Angelo Zino said in a report. "We still view the lingering trade issues with China as the biggest risk to the semiconductor industry and expect chipmakers to remain pressured near term until better clarity on the situation is realized," Zino said. RELATED: Market Sell-Off Accelerates; This Top Chinese Stock Hits Key Support Level Nasdaq Leads Stocks Lower As U.S. Amps Up Trade Threats; Netflix Dives Read More Nvidia Gets Price-Target Hike; Intel Downgraded On CEO Turmoil : https://ift.tt/2IrsWv1
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Intel Chairman Andy Bryant is again hiring a chief executive - and again, it's catching him off guard. CEO Brian Krzanich unexpectedly quit Thursday after Intel discovered he had carried on a relationship with an Intel employee in violation of company policy. That sent Bryant and his colleagues on Intel's board scrambling, in urgent need of a new chief at a crucial moment in Intel's history. Intel shares fell more than 4 percent Monday morning, to $50.19, amid a broad tech selloff and unease following Intel's shakeup and an analyst's sharply worded downgrade. "We believe the lack of leadership will only add to the already growing uncertainty about Intel's long-term franchise," Nomura Instinet analyst Romit Shah wrote in a note to clients. He cut his rating on Intel to "Neutral" from "Buy" and reduced his price target on the stock from $60 to $55. It's been six years since Intel last went looking for a CEO, when Paul Otellini unexpectedly announced his retirement. Bryant, a veteran Intel executive who lives in Oregon, was the company's newly installed chairman and led a six-month search before hiring Krzanich. Lessons from that experience will undoubtedly influence who Bryant and the board choose this time. And his reflections on that experience may give some indication of his, and Intel's direction. "The thing we do better than anybody else in the world is process silicon," Bryant told The Oregonian/OregonLive in 2014. "You have to understand that. You have to understand the culture of the company. It is a difficult company to come into from the outside." Intel's in a very different place than it was four years ago, when the company was nursing its wounds from having missed the mobile revolution created by smartphones and tablets. Today's Intel is thriving thanks to its dominance in providing chips for the lucrative data center market, the company's most lucrative business. And with the PC market fading, Intel is looking toward new technologies, including artificial intelligence and self-driving cars, to drive its future. Potential candidates Some possibilities for Intel's next CEO Diane Bryant: Former Intel data center chief, now chief operating officer of Google Cloud Pat Gelsinger: Longtime Intel executive, now CEO of VMware Sanjay Jha: Former GlobalFoundries CEO Venkata "Murthy" Renduchintala: President of Intel's PC and manufacturing groups Navin Shenoy: Manager of Intel's data center group Bob Swan: Intel CFO, interim CEO Hock Tan: Broadcom CEO Yet Intel has lost its position as the world's largest chipmaker and has stumbled at its most elemental task, delaying the launch of its next generation of 10-nanometer microprocessor for years as it struggles to overcome persistent defects. Since Bryant is still chairman, his sense of what Intel needs will doubtless play a key role in choosing Intel's next chief. Intel said last week it will hire an executive search firm and look inside and outside the business. Intel inside? Intel has never hired an outsider to run the company. The company, which turns 50 this year, has only had six CEOs - and all of them were Intel lifers. Near the top of the list must be Navin Shenoy, manager of Intel's data center group. He's been with the company since 1995, previously led its business in the enormous Asian market, and served as Otellini's chief of staff. Intel could also choose a former insider. VMware CEO Pat Gelsinger was Intel's first chief technology officer before leaving in 2012 for VMware. Gelsinger appeared to rule that out last week, though, in response to speculation he could be Intel's next chief. "I love being CEO @vmware and (am) not going anywhere else," he wrote on Twitter. "The future is software!!!" Diane Bryant, Intel's former data center chief (and no relation to Chairman Andy Bryant), could be another inside/out candidate. She went on leave last year "to tend to a personal family matter" and never returned, opting instead for a top job at Google. Outside-in? During his time as CEO, Krzanich broke with tradition and remade Intel's executive ranks with outsiders. That means Intel has only a couple longtime employees to choose from if it wants an experienced candidate from inside the company. Intel installed Chief Financial Officer Bob Swan to run the company on an interim basis. He's a veteran finance executive, though he's been at Intel for less than two years and has no technical experience in chip architecture or manufacturing. Bryant is a former CFO, too, and might be predisposed to someone with the same outlook. But Swan told employees Thursday he did not want the CEO job, according to employees who heard him address the company in the hours after Krzanich's exit. On paper, the most logical candidate to take over as Intel's next CEO must be Venkata "Murthy" Renduchintala, whom Krzanich hired away from rival Qualcomm in 2015. Renduchintala's responsibilities have expanded in his three years at Intel, and he now holds the title of president of its PC business (which still accounts for most of Intel's sales) and its manufacturing group. Ambitious and assertive, Renduchintala arrived at Intel decrying "a lack of product/customer focus in execution that is creating schedule and competitiveness gaps in our products" in a memo he sent to his fellow executives. If Intel's board decides the company needs to continue shaking things up, Renduchintala has demonstrated he's happy to be the one to do it. "Dr. Renduchintala is a well-respected engineer but we think won't immediately convince investors that Intel can overcome its challenges," Nomura Instinet's Shah wrote Monday. He said he believes Renduchintala is the most likely choice. A true outsider? In his research note, Shah said he believes Intel needs to go outside for an experienced CEO. "We believe Intel needs to hire an external candidate such as Hock Tan at Broadcom or Sanjay Jha from GlobalFoundries that have a proven track record of driving shareholder value," Shah wrote. Bryant is, at least nominally, open to hiring an outsider - provided that person understands chip technology. "We did an extensive outside search," Bryant said four years ago. "And there were times in the process when I would have given odds that we would go outside. If I were guessing at the beginning I would have said more likely outside then inside." But Bryant made it clear that any outside hire needs to understand the specialized world of semiconductor technology. That's a fairly narrow pool, though both Tan, Broadcom's longtime CEO, and Jha, who led contract manufacturer GlobalFoundries until March, fit the bill. Whatever his or her background, Bryant said any CEO hire needs a demonstrated capacity to learn, adapt and understand Intel's unique culture. "This is a job no one is qualified for on day one," he said in 2004. "You need someone you think can get qualified as quickly as possible." -- Mike Rogoway | twitter: @rogoway | 503-294-7699 Read More Intel's CEO search: Here's what Chairman Andy Bryant seeks : https://ift.tt/2trilM8[unable to retrieve full-text content] Semiconductor manufacturing process technology is a very expensive, capital and resource-intensive game. It’s so capital intensive that it’s the reason why so many semiconductor suppliers have gone to a “fabless” model, designing their chips but having them built at silicon manufacturing partners like TSMC, GlobalFoundries or Samsung. For decades now, Intel has maintained its juggernaut silicon production advantage over its competition by developing its own leading-edge chip fabrication and process technologies. However, now that historic advantage looks like it will actually be a liability, versus an asset for the company, which is something that hasn't occurred in many years, since I can remember, actually. Earlier in April this year, AMD CEO Dr. Lisa Su went on record noting the company’s first CPU and GPU silicon, based on cutting-edge 7nm process technology, would start sampling this year for volume ramp in early 2019. Meanwhile, around the same timeframe, Intel went on record noting first silicon from its 10nm process technology would be delayed until 2019. Fast-forward to today and over the weekend, reports came out that TSMC (Taiwan Semiconductor Manufacturing Company) was already ramping up 7nm chip manufacturing volume, with not only AMD GPUs in the mix but also 7nm AMD CPUs, specifically AMD’s Zen 2 architecture-based next generation EPYC server processors. AMD’s EPYC line of many core server processors exploit a key product segment in single socket servers for the data center and enterprise. This is Intel’s bread and butter, cash cow business that, in some cases, AMD can offer strategic advantages in, with a higher core count per socket for better efficiency and higher performance in similar footprints. AMD has already made inroads with EPYC in major server OEMs like Dell-EMC, HP Enterprise and others, and its Zen 2-based EPYC product will only expand on the platform's advantages with even potentially higher core counts, better performance and efficiencies at scale. It will be interesting to watch the sparks fly, as AMD’s fabless semiconductor model with its partners TSMC and GlobalFoundries take on Chipzilla at a time when the company is retrenching what used to be its primary established beachhead in manufacturing prowess. And on the consumer desktop, AMD also has a significant core-count advantage in the high end, with its recently announced and demonstrated 2nd Gen Threadripper product (based on 12nm Zen+) that will bring up to 32 cores in the same TR4 scoket as the original Threadripper X399 motherboard platform. What an amazing turning of the tables we’re all witnessing here. Intel has to react to these real competitive threats and so far has committed only its 14nm++ products in Cascade Lake and Cooper Lake, with multi-chip module designs for higher core counts launching in late 2018 and 2019. So it appears Intel's 14nm product will have to compete toe-to-toe with AMD 7nm product, at least for a period of time. Not many saw that coming you can be sure. Disclosure: I currently maintain a small position in AMD and previous positions in INTC, but neither affect my reporting on either company or their products. Read More AMD's 7nm Process Lead Over Intel Is Real And First Silicon Will Ship This Year : https://ift.tt/2KluWH8Not a good few days for Intel. Shares of Intel Corp. (INTC) were dropping Monday, June 25, after Nomura Instinet analyst Romit Shah downgraded the chip manufacturer. The downgrade to neutral from buy follows the resignation last week of CEO Brian Krzanich, who stepped down after news broke that he had a "consensual previous relationship" with an Intel employee. The company has a strict non-fraternization policy. Shah cited the lack of leadership at Intel as a reason for the downgrade. He also reduced his price target on the stock to $55 from $60. In morning trading on Monday, Intel was down more than 2.4% to $51.26. TheStreet's Annie Gaus reported last week that Krzanich's sudden exit followed closely on the heels of a string of unflattering events for the company and its chief this year. In January, the chipmaker was rocked by the discovery of two widespread vulnerabilities in its chips, which affected nearly all devices using Intel chips. (The same vulnerabilities affected chips made by Advanced Micro Devices Inc. (AMD) and Softbank-owned ARM, to some degree). Since then, Intel has run into manufacturing trouble and delays with its forthcoming 10nm FinFET chips. Gaus also reported that Intel may be seen as weak in comparison to other chip stocks, such as Nvidia Corp. (NVDA) . While Krzanich ushered in an era of growing revenue and widening margins in Intel's core businesses in his five years at the helm, he's also blamed for squandering advantages in data center processing and missing the boat on AI and machine learning, which have allowed rivals AMD and Nvidia to gain ground. And as Nvidia has successfully evolved from a dominant graphics card provider to an AI-first business serving new markets like autonomous cars, Intel has been left to play catch-up. Intel shares have risen 14% year to date, while Nvidia has gained 30%. Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now. The great chip race is on. I have long been a supporter of both Intel (INTC) and Nvidia (NVDA) . I liked both of the CEOs running these firms. Jensen Huang, the man who could seemingly do no wrong, and Brian Krzanich, the leader who would finally give Intel shareholders something beyond the dividend to cheer about. Both of these faves have come under pressure in June, as has the larger group. Intel for reasons other than trade, that I think we can all agree might have left fans of the stock in some state of shock. I have successfully traded around Nvidia's rises and falls (at least recently). As for Intel, I sort of got smacked in the teeth. Now, as many traders are indeed involved in both of these names, we must figure out where to dig in, or if there is to be continued wreckage. Unfortunately, both of these names are highly exposed on the revenue side to China. For Intel, Chinese exposure runs at nearly 23%. For Nvidia, that slice still comes to more than 18%. Now, as Intel leadership is likely to be distracted by the firm's search for a new top dog, is there a chance for rivals such as Advanced Micro Devices (AMD) , and Taiwan Semiconductor (TSM) to move in on what had previously been Intel's turf? In other words, if you are sitting on a large profit here -- or even if you are not -- is it time to cut and run? Nvidia (NVDA)There are two spots on this chart that scream at me to pay attention. With this name, I am running skinnier than usual, having taken some profits at higher levels. Here I am more likely to add, than to cut and run, but the whole Chinese exposure thing really has me dragging my feet. The $246 spot serves as a wake-up call. That is where a 38.2% retracement of this past Spring's entire move intersects with the lower trend line of a December-through-present Pitchfork, and it intersects right here in late June. That spot cracks, and we likely look at $239. That is precisely where the base for the June highs was built in mid-May when that spot held on multiple attempts. At $239 is the true panic point for a trader protecting a much lower basis, as that is where the potential for a "Holy Moley" moment exists. I do not intend to add at this time to this Action Alerts Plus name. I need to see visible support at either one of these spots in order to even consider increasing. Here we have a more immediate problem, as we not only deal with negative publicity, but a high level of Chinese exposure. The first thing you'll see here is the failure of the Pitchfork model to hold last week. A negative looking MACD, Relative Strength indicator, and Chaikin Money Flow will also stare you in the face. This stock is trading in the overnight markets right now around that 50-day simple moving average ($51.22), which happens to be in the general vicinity of a 38.2% retracement of the 2018 range. A crack here this morning could really be more than a crack, especially if the firm is slow to define competent leadership. Speaking of slow, I have been slow to react to the news flow around this stock, as it had been one of my top performers for a solid year. My bad. That also means that I have something to protect and will have to act should this level fail. I will likely sell 50% of my stake on any sign of resistance at that 50-day line. My intent would be to buy it back later -- but honestly, not until the firm gives me a fundamental, instead of a technical, reason. Read More How to Play Nvidia and Intel on a Trade War With China : https://ift.tt/2IpDH0SInstinet analyst Romit Shah downgraded Intel Corp. INTC, -1.83% shares to neutral from buy on Monday, days after the resignation of Chief Executive Brian Krzanich, who violated the firm's non-fraternization policy through his past affair with a coworker. "CEO Krzanich's departure is disappointing on multiple levels," Shah wrote. "We believe the lack of leadership will only add to the already growing uncertainty about Intel's long-term franchise." Intel shares are down 2% in premarket trading. Shah suggests that the company look to hire Hock Tan, the current CEO of Broadcom Inc. AVGO, -1.74% or Sanjay Jha, the former CEO of Globalfoundries, to replace Krzanich. Intel shares are up 54% over the past 12 months, while the Dow Jones Industrial Average DJIA, -0.63% has gained 15%. Read More Intel stock falls after Instinet downgrades to neutral : https://ift.tt/2lunzSKIntel's surprising management turnover will have a negative impact on its share price, according to Nomura Instinet. The firm lowered its rating to neutral from buy for Intel shares, saying the search for the company's next CEO will add to concerns over its strategy. On Thursday, Intel announced the resignation of its CEO Brian Krzanich for his alleged infraction of the company's nonfraternization policy. Krzanich violated the policy that said managers cannot have relationships with people who report to them either directly or indirectly, Intel said. “CEO Krzanich’s departure is disappointing on multiple levels. We believe the lack of leadership will only add to the already growing uncertainty about Intel’s long-term franchise," analyst Romit Shah said in a note to clients Monday. "Our point is that INTC’s multiple started compressing before Mr. Krzanich’s departure; lack of clear leadership will likely only add to the already growing uncertainty about Intel’s long-term outlook.” Intel shares are down 2.4 percent in Monday’s premarket session after the report. Its stock is up 14 percent this year through Friday versus the S&P 500's 3 percent return. Shah reduced his price target to $55 from $60 for Intel shares, representing 5 percent upside to Friday's close. The analyst also noted Intel’s problems in moving to its next-generation chip manufacturing technology. The chipmaker revealed on its April 26 earnings conference call that it delayed volume production under its 10-nanometer chip manufacturing process to next year. Conversely, AMD said on its call that it plans to start next-generation 7-nanometer chip production in late 2018. One nanometer equals one-billionth of a meter. Smaller nanometer chipmaking technologies allow companies to create faster, more power-efficient chips. “We believe the most likely scenario is that Intel promotes Dr. Murthy Renduchintala who oversees most of Intel’s product groups. Dr. Renduchintala is a well-respected engineer but we think won’t immediately convince investors that Intel can overcome its challenges,” Shah said. “We believe Intel needs to hire an external candidate such as Hock Tan at Broadcom or Sanjay Jha from GlobalFoundries that have a proven track record of driving shareholder value.” Intel did not immediately respond to a request for comment. Read More Intel downgraded due to 'lack of leadership' after CEO resignation; shares fall : https://ift.tt/2Mnc6zQQualcomm keeps pushing its Snapdragon chips further and further CHIP SUPREMACY tends to involve Intel and AMD duking it out over core and thread counts, but Qualcomm is taking a different tact by aiming to challenge Intel at the low-end with its Snapdragon 1000 SoC. While Qualcomm hasn't officially revealed the Snapdragon chip, WinFuture has the lowdown on the latest slice of silicon from the firm, aimed not at smartphones but at driving low-power, slim Windows 10 computers under the Always-Connected PCs initiative. When it comes to powering such devices, Intel's Y and U-series Core I processors have held sway, balancing performance with power-sipping credentials. But some of these processors are somewhat lacklustre, which is why the Snapdragon 1000 apparently has a thermal design power of 12W. That's nearly three times the power draw of Intel's Y-series processors and just 3W behind the chipmaker's U-series chips. As such, the Snapdragon 1000 should be able to draw upon enough power to give it a boost in performance that's comparable to the more prominent low-end laptop chips. The Snapdragon 1000 promises to be a gutsier chipset than the Snapdragon 850 announced earlier this month, which is basically a re-designed Snapdragon 845 chip designed to run Windows 10. Sporting ARM Cortex-A76 cores and using a 7nm fabrication process, the Snapdragon 1000 is expected to be comparable to a 15W Intel U-series Core i5, though we'll have to wait and see if such expectations come to fruition. But such a chip could really challenge Intel at the low-power laptop and hybrid end of the PC market. And such a challenge is not something Intel really needs, given it already has AMD snapping at it once again with its second-generation Ryzen and Threadripper processors, as well as SoCs that have noteworthy graphical chops to beat Intel's own integrated graphics in laptop chips. Of course, Intel is a dab hand at making laptop processors, while Qualcomm in comparison is a bit of an upstart, so time will tell in the latter can really challenge the former. µ Further readingChipzilla offloads devs, support teams and contractsHPC storage supplier DDN has bought Intel's Lustre file system business, including its dev teams and support contracts. Intel bought its way into the parallel file system world by gobbling Lustre developer and supporter Whamcloud in 2012. This was positioned as an aspect of Intel's ambitions to be a bigger player in super-computing as it headed towards exascale. However, this didn't achieve all that much for Chipzilla and it stopped providing its own-brand Lustre products in April 2017, saying it would contribute all its Lustre enhancements to the open-source community. Community players thought Intel was too big and broad to give Lustre the focus it needed. Recently IBM's Spectrum Scale has been making progress in high performance computing (HPC) and supercomputing with, for example, NVMe flash drive and NVMe-over-Fabrics support. DDN has been involved with Lustre for many years, with its EXAScaler Lustre storage system product. It has a strong technology roadmap for Lustre and will add NVMe drive support as part of that, having had NVMe support in its own IME product for over a year. This is seen as crucial. DDN said it will also continue to support OpenSFS. The Lustre team is already being expanded and will be significantly increased in 2019. DDN wants to broaden Lustre's appeal out from super-computing and HPC to mid-range and AI environments, adding both cheaper and better-performing Lustre systems in these areas. It particularly sees AI as a potentially vast and broad market with cost-effective, high-speed, random read access to large amounts of data being crucial – an ideal focus for Lustre. DDN said it sees AI users as data scientists and will increase Lustre's ease of deployment, management and monitoring. It will also develop hybrid cloud (on-premises and public cloud) facilities for Lustre. DDN has taken on all of Intel's Lustre support contracts, both for end users and channel partners. But DDN may have some work to do winning over the Linux community, as Lustre was last week ejected from the Linux kernel. +CommentWe think persuading Chipzilla to hand over its Lustre reins to someone better able to give it the focus it needs is a good step forward. DDN is privately owned, profitable and focused on HPC storage systems, both academic and commercial. It now has the means to make Lustre a more capable competitor to IBM's Spectrum Scale, add its storage access smarts and make it more AI-capable. ® Sponsored: Unleash the potential of all-flash storage in your Data Center with Huawei |
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