Technology

CFRA Maintains Buy Opinion On Shares Of Advanced Micro Devices, Inc.

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target at $200, on P/E of 36.8x our ’25 EPS view, below 5-year historical average/above peers. We adjust our ’24 EPS estimate to $3.54 from $4.10 but keep ’25 at $5.44. AMD posts Q1 EPS of $0.62 vs. $0.60, beating the $0.61 consensus. Sales rose 2% and provided Q2 outlook (+6% Y/Y) largely in line with expectations, as investors were hoping for more amid a strong AI capex environment. Still, Data Center momentum (+80%) remains strong, as it incrementally boosts ’24 GPU server outlook ($4B from $3.5B) given better MI300X visibility from cloud players (Microsoft, Meta, Oracle) and enterprise momentum. Easy comparisons and PC recovery drove Client (+85%), while we expect an enterprise refresh cycle for AI PCs to start in the 2H. […]

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Skyworks Solutions Says Phone, Tablet Demand Was Light in 2Q

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Skyworks Solutions, a semiconductor maker, is seeing weaker-than-expected demand for tablets and phones. The company, which makes networking components with industrial, defense and mobile-device applications, says with 2Q results that end-market demand in mobile, which includes smartphones, tablets and smartwatches, was below normal seasonal trends. Skyworks expects another sequential drop in mobile as inventory clears. The commentary may be an early sign that a broader recovery in the smartphone market is stumbling. Shares fall 9.5% to $96.51 after-hours.

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Apple Resumes Talks With OpenAI for iPhone AI Features

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Apple (AAPL) has resumed talks with OpenAI to potentially incorporate the startup’s technology into upcoming iPhone features later this year, Bloomberg reported late Friday, citing people familiar with the matter. The two companies have started discussions regarding potential terms of an agreement and the integration of OpenAI features into the next iPhone operating system, iOS 18, the report said. Apple is also in talks with Alphabet’s (GOOG, GOOGL) Google about licensing its Gemini chatbots, according to the report. No final decision has been made, and there’s no assurance of a deal, Bloomberg reported. Apple may opt for agreements with both OpenAI and Google, or choose a different provider altogether, the report said.

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Meta Faces EU Probe For Suspected Failure To Combat Russian Disinformation

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European Commission reportedly plans to investigate Meta Platforms Inc’s (NASDAQ:META) Facebook and Instagram over concerns regarding Russia disinformation, with suspicions of inadequate moderation. Regulators are alarmed by Meta’s purportedly insufficient efforts to combat political advertising disinformation, risking electoral integrity, according to a report from Financial Times. Also See: How Apple’s Arch Rivals Meta And Google Are Revamping Their Plans To Take On The Might Of iPhone And Vision Pro EU officials express unease over Meta’s handling of Russian interference in upcoming European elections, underlining broader concerns about misinformation spread by foreign entities. Moreover, the accessibility of Meta’s content flagging system under the EU’s Digital Services Act raises apprehensions, with fears that it might not meet regulatory standards. The investigation, spurred by Meta’s report on disinformation handling and the EU’s assessment, will scrutinize whether Facebook and Instagram comply with the law in placing political content. The probe also delves into Meta’s discontinuation of

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BofA Says These 4 Companies Could Benefit From The Next Apple Product Cycle

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Apple Inc. (NASDAQ:AAPL) recently released a list of its top suppliers for materials, manufacturing and assembly of its products which showed that China remains a key manufacturing base and India is ramping up production as well. Why It Matters: BofA Securities released a research note based on the list of Apple’s suppliers which named companies that could potentially benefit from an Apple product cycle. BofA named electronics manufacturers Jabil, Inc. (NYSE:JBL) and Flex, Ltd. (NASDAQ:FLEX) as potential beneficiaries and noted Apple accounted for 17% of Jabil’s revenue in 2023. Amphenol Corporation (NYSE:APH) provides connectors and antennas for the iPhone, and BofA estimates Apple accounts for single-digit revenue at Amphenol. BofA also noted glass maker Corning Incorporated (NYSE:GLW) remained on Apple’s 2023 supplier list. Related News: Apple And Tesla ‘Only Two Companies Able To Thread The Needle In Terms Of China-US’, Says Top Analyst After Tim Cook And Elon Musk’s Recent China Visits The firm maintained its Buy rating on

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Apple’s Fear Factor Is a Draw — WSJ

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By Dan Gallagher Apples largest business is struggling, while the company is also losing ground in China and seems to have completely missed Big Techs AI party. That might make now a good time to buy the stock. Apples share price jumped more than 3% Monday morning after Bernstein analyst Toni Sacconaghi upgraded the stock to a buy rating. A Heard on the Street column also published Monday morning noted that the stock has been a weak performer this yearespecially relative to other big tech shares that have been lifted by the markets enthusiasm for generative artificial intelligence. Worries about the latest iPhone cycle, China, regulatory pressure in the U.S. and Europe and the companys unclear plans for its own AI play have all combined to push Apples multiple to around 25 times forward earningsin line with its five-year average, according to FactSet data. Buy the fear, was Sacconaghis advice

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AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend

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Escalating electricity needs from running AI data centers will create downstream investment benefits in the utilities, renewable energy generation, and industrial sectors, according to Goldman Sachs. In a recently published study, equity analyst Carly Davenport has listed a basket of stocks positioned to benefit from the potential massive surge in U.S. power demand. The investment bank forecasts that data center power demand will grow at 15% compound annual growth rate from 2023-2030. This growth trajectory is expected to elevate data centers’ share of total US power demand to 8% by 2030, up from the current level of approximately 3%. The “U.S. power demand (is) likely to experience growth not seen in a generation. Not since the start of the century has US electricity demand grown 2.4% over an eight-year period, with US annual power generation over the last 20 years averaging less than 0.5% growth,” Goldman Sachs highlights. Analysts estimate

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CFRA Maintains Hold Opinion On Shares Of Intel Corporation

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target to $35 from $45, on P/E of 16x our ’25 EPS view, below peers to reflect lackluster AI prospects. We cut our ’24 EPS to $1.07 from $1.45 and ’25 to $2.20 from $2.40. INTC posts Q1 2024 EPS of $0.18 vs. -$0.04, beating the $0.14 consensus. Revenue rose 9%, slightly below consensus, as 31% growth in Client Computing and 5% boost in Data Center and AI was partly offset by declines across all other segments (Foundry -10%). Q2 guide was a disappointment in terms of both revenue ($13B vs. $13.6B consensus) and gross margin (43.5% vs. 45.4% view), but cites a stronger ramp in the 2H. We find INTC’s inability to gain momentum disturbing despite strong cloud customer spend, while its

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Alphabet Showed Perfection, and That Could Drive the Stock’s Best Day in 9 Years

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By Emily Bary Google parent puts ‘doomsday AI search share-loss fears’ to bed with latest earnings report Alphabet Inc.’s stock could see its second-best single-day performance in history on Friday, following an earnings report that drew effusive praise from analysts. Simply put, the company was “perfect,” in the view of Bernstein analyst Mark Shmulik. The Google parent company faced an interesting setup headed into the report. On one hand, its shares were near all-time highs. But at the same time, Alphabet (GOOG) (GOOGL) has spent the past year and a half drawing investor doubts over factors like its artificial-intelligence positioning and the future of its core search business in a world where AI queries come to dominate, wrote Shmulik, who has a market-perform rating on the stock. See also: Alphabet’s stock surges on first-ever cash dividend, $70 billion stock buyback, strong results He noted that the company’s results were buoyed

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Intel (INTC.US) Q1 2024 Earnings Conference

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The following is a summary of the Intel Corporation (INTC) Q1 2024 Earnings Call Transcript: Financial Performance: Intel reported a Q1 revenue of $12.7 billion, with a YoY growth of 9%. The quarter witnessed a gross margin of 45.1%, surpassing the guidance by 60 basis points. The company’s EPS stood at $0.18 for the quarter, exceeding the guidance by $0.05. Operating cash flow was recorded as negative $1.2 billion. The company anticipates stronger sequential revenue growth throughout the year and into 2025. Intel predicts peaking of costs in 2024, with revenue improvements in Q3 and Q4 that will help lift gross margins in the second half. The company projects better gross margin rates in 2025 than in 2024, targeting mid-50s margins midway between now and 2030, with an ultimate aim of 60%. Business Progress: Intel announced Microsoft as its fifth Intel 18A customer, with another meaningful customer signed on. Intel

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Microsoft (MSFT) Q3 2024 Earnings Call Transcript

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The following is a summary of the Microsoft Corporation (MSFT) Q3 2024 Earnings Call Transcript: Financial Performance: Microsoft reported $61.9 billion in revenue for Q3, a 17% increase from previous year’s period. They posted strong earnings per share of $2.94, a 20% increase year-over-year. Revenue gains were largely driven by Azure commitments, resulting in commercial bookings increasing 29% and 31% in constant currency. Microsoft’s cloud business recorded a revenue of $35.1 billion, growing at 23%, with gross margin percentage decreasing slightly to 72%. Operating expenses grew by 10%, with operating income increasing by 23%, and operating margins rising approximately 2 points year-over-year to 45%. Business Progress: Over 65% of Fortune 500 companies are now using Azure’s OpenAI service, indicating a growing business user base. Microsoft’s Copilot system is gaining traction, with plans to create Copilot-like scenarios in every business system to enhance enterprise-wide efficiency. Diablo IV’s integration into Game Pass

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Intel’s Q2 Guidance ‘Left a Lot to Be Desired,’ Wedbush Says

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Intel’s (INTC) Q2 financial outlook “left a lot to be desired,” with revenue seen only rising modestly and margins projected to fall meaningfully on a sequential basis, Wedbush Securities said Friday. Late Thursday, the technology giant said it expects Q2 non-GAAP earnings of $0.10 per share on revenue of $12.5 billion to $13.5 billion. Analysts polled by Capital IQ expect EPS of $0.11 on revenue of $13.22 billion. Intel’s outlook contrasts with its previous estimate for sequential improvement through the course of the year, Wedbush analyst Matt Bryson said in a note. “In addition, we believe some incremental color that Intel provided on the call was less compelling than might have been hoped for.” The brokerage lowered its price target on the Intel stock to $32.50 from $40.00 while keeping its neutral rating. The company’s shares were down more than 8% in recent trading.

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