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Dividend Growth Idea Qualcomm Growing at a Robust Clip

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Image Shown: Dividend growth idea Qualcomm Inc put up strong performance last fiscal quarter. Image Source: Qualcomm Inc – Third Quarter of Fiscal 2022 Earnings Press Release By Callum Turcan Qualcomm Inc (QCOM) recently reported third quarter earnings for fiscal 2022 (period ended June 26, 2022) that beat both consensus top- and bottom-line estimates. The company provided guidance for the fiscal fourth quarter that was a tad lighter than what Wall Street was looking for, though its near term forecasts still call for substantial revenue and earnings growth on a year-over-year basis. We like Qualcomm as an idea in the Dividend Growth Newsletter portfolio given its stellar free cash flow generating abilities, healthy balance sheet, pricing power, bright growth outlook, … Read more

Nvidia Is a Great Company but Its Shares Appear to be Generously Valued

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Image Source: Nvidia Corporation – October 2020 IR Presentation By Callum Turcan On November 18, Nvidia Corporation (NVDA) reported third quarter earnings for fiscal 2021 (period ended October 25, 2020) that beat both consensus top- and bottom-line estimates. The company’s GAAP revenues jumped higher by 57% year-over-year last fiscal quarter, aided by growth at its ‘Data Center’ (sales were up 190% year-over-year) and ‘Gaming’ (sales were up 37% year-over-year) business operating segments, which combined represented ~88% of its revenues last fiscal quarter. Nvidia’s ‘Professional Visualization’ and ‘Automotive’ business operating segments both posted year-over-year declines in sales. The ongoing coronavirus (‘COVID-19’) pandemic has accelerated recent trends in the digital world, such as the pivot towards offsite cloud-computing solutions to meet IT … Read more

Our Thoughts on Intel’s Latest Earnings Report

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Image Shown: An overview of Intel Corporation’s performance during the first nine months of fiscal 2020. Image Source: Intel Corporation – Third Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan On October 22, Intel Corporation (INTC) reported third quarter fiscal 2020 earnings (period ended September 26, 2020) that largely matched consensus expectations. Intel boosted its full-year outlook for fiscal 2020 on a net basis (which included an increase in its expected free cash flows this fiscal year) during its latest earnings update, though management reduced its forecast for Intel’s expected operating margins versus previous expectations. We continue to like Intel’s ability to generate sizable free cash flows, though we are concerned with its rising net debt load of … Read more

Our Thoughts on Intel’s Big Divestiture Ahead of Its Earnings Report

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Image Source: Intel Corporation – Second Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan On October 20, Intel Corporation (INTC) and South Korean-based SK Hynix announced a major transaction that will reshape the global NAND flash memory market. For reference, NAND flash memory is used in smartphones, personal computers, and other digital devices. Intel will receive $9.0 billion in cash that will be paid out in two phases, assuming everything goes as planned. In return, SK Hynix is receiving “Intel NAND memory and storage business, which includes the NAND SSD business, the NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China” though Intel will retain its Intel Optane business, which caters to both … Read more

Intel Plans to Repurchase a Lot of Its Stock

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Image Shown: Intel Corporation is having trouble producing the next generation of chips (7-nm and smaller) as its current manufacturing process is having yield issues, which we covered previously. Image Source: Intel Corporation – Architecture Day 2020 Presentation By Callum Turcan On July 23, Intel Corporation (INTC) reported second quarter fiscal 2020 earnings (period ended June 27, 2020) that we covered in detail here. For members that have not yet read that note, we strongly encourage them to do so. Please note that delays in Intel’s 7-nm chip production schedule weighed negatively on its medium-term outlook, which sent shares of INTC meaningfully lower after its latest earnings report. Management recently responded by announcing a plan to aggressively buy back Intel’s … Read more

Nvidia Bets Big on Data Centers

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Image Source: Nvidia Corporation – 2020 Annual Meeting of Stockholders Presentation By Callum Turcan On August 19, Nvidia Corporation (NVDA) reported second quarter fiscal 2021 earnings (period ended July 26, 2020) that beat consensus top-line estimates (on a GAAP basis) and consensus bottom-line estimates (on a non-GAAP basis, as its GAAP earnings were slightly lower than consensus estimates). Nvidia has several things going for it including a pristine balance sheet (meaning a net cash position), a data center business that is growing at a brisk pace (which we will cover in this note), a high quality cash flow profile (relatively low capital expenditure requirements to generate meaningful revenues), and its outlook is supported by secular growth tailwinds, particularly as it … Read more

Intel’s 7-nm Chips Behind Schedule, Free Cash Flows Remain Strong

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Image Shown: Intel Corporation made waves on July 23 when it announced its 7-nm chips were well behind schedule. Image Source: Intel Corporation – Second Quarter Fiscal 2020 IR Earnings Presentation By Callum Turcan On July 23, Intel Corporation (INTC) reported second quarter fiscal 2020 earnings (period ended June 27, 2020) that beat both consensus top- and bottom-line estimates. However, shares of INTC dropped during after hours trading that day due to Intel delaying the rollout of its 7-nanometer chips. The company offered full-year guidance for fiscal 2020 that indicated its growth trajectory was continuing in the face of the ongoing coronavirus (‘COVID-19’) pandemic, though investors were largely fixated on the delay of its 7-nm chip offerings. Guidance Update In … Read more

Intel Seeks 5G Network and IoT Growth to Offset Data Center Weakness

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Image Source: Picture taken by the author. By Callum Turcan A holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolio, Intel Corporation (INTC) reported earnings on July 25. The semiconductor boosted full-year revenue guidance by $0.5 billion to $69.5 billion while increasing non-GAAP EPS up to $4.40 (from $4.35 previously) for fiscal year 2019, keeping in mind Intel’s top- and bottom-lines are expected to weaken modestly on a year-over-year basis due to poor performance at its data center segment. Management reiterated that Intel still expects to generate $15.0 billion in free cash flow in fiscal year 2019 after spending $15.5 billion on capital expenditures. We like Intel’s free cash flows and income growth trajectory. Shares of INTC … Read more

Our Thoughts on the Widespread Launch of 5G Services

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Image Shown: The evolution of wireless networks and telecommunications technology over the years. Image Source: Intel Corporation – November 2019 State of 5G Presentation  By Callum Turcan The rollout of 5G telecommunication networks is upon us and we want to draw our members’ attention to some of the key companies with meaningful exposure to this space. Many are excited about what opportunities 5G technology could enable. Background On July 23, AT&T Inc (T) announced its 5G network in the US was operational nationwide and that effective August 7, both consumers and businesses with certain packages would have 5G access “at no additional cost” which included customers with AT&T Unlimited Starter, Extra, Elite, AT&T Business Unlimited Web-Only and Starter wireless plans. … Read more