LRCX

Taiwan Semi Firing on All Cylinders

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Image Source: Taiwan Semiconductor Manufacturing Company – First Quarter of 2022 IR Earnings Presentation By Callum Turcan Semiconductor components, or “chips,” are the bedrock of the digital economy. Taiwan Semiconductor Manufacturing Company (TSM) operates numerous semiconductor fabrication sites all of the world, with its major manufacturing hub located in Taiwan, that produce chips utilized in all sorts of applications. Furthermore, Taiwan Semi is one of only a handful of companies capable of producing high-end chips at scale. Taiwan Semi’s business model revolves around producing chips for third-parties as the firm does not design semiconductor components itself, and the company is the largest semiconductor foundry in the world (foundries are chip fabrication sites specifically built to meet third-party needs). We are … Read more

Broadcom Buying VMware as “Empire Building” Streak Continues

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Image Shown: Broadcom Inc is acquiring VMware Inc and the deal will significantly increase its enterprise software business. Image Source: Broadcom Inc and VMware Inc – May 2022 IR Presentation By Callum Turcan Continuing with its acquisitive streak, the semiconductor and enterprise software giant Broadcom Inc (AVGO) announced on May 26 that it would acquire hybrid cloud services provider VMware Inc (VMW) through a cash-and-stock deal that values VMware at ~$61 billion. Additionally, Broadcom will assume ~$8 billion in net debt from VMware. This follows in the footsteps of Broadcom’s $18.9 billion deal to acquire CA Technologies in 2018 and its $10.7 billion deal to acquire the enterprise security business of then-Symantec, now NortonLifeLock Inc (NLOK), in 2019. Under the … Read more

Dividend Growth Idea Qualcomm Beats Estimates; Near Term Guidance Incredibly Bright

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Image Shown: Dividend growth idea Qualcomm Inc has a stellar cash flow profile. Image Source: Qualcomm Inc – 10-Q SEC filing covering the Second Quarter of Fiscal 2022 By Callum Turcan On April 27, Qualcomm Inc (QCOM) reported second quarter earnings for fiscal 2022 (period ended March 27, 2022) that beat both consensus top- and bottom-line estimates. The company is a leader in the technologies relating to 5G wireless, Internet of Things (‘IoT’) trend, semi-autonomous and autonomous driving, and handset operations. We include Qualcomm as an idea in the Dividend Growth Newsletter portfolio as we view its dividend strength and payout growth outlook quite favorably. Shares of QCOM yield ~2.3% as of this writing. The firm’s latest earnings update and … Read more

ESG Newsletter Portfolio Idea ASML Holding May Further Boost Longer Term Guidance

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Image Shown: How ASML Holding Inc’s photolithography systems are used to produce semiconductor components, including the most cutting edge “chips” along with more mature semiconductor components. Image Source: ASML Holding Inc – Fiscal 2021 Annual Report By Callum Turcan The maker of advanced photolithography systems that are used to produce the most cutting edge semiconductor components or “chips” is the Dutch firm ASML Holding NV (ASML). It has a virtual monopoly at the high-end of this market due to its technological prowess in this space and focus on R&D. The firm also produces photolithography systems to make more mature chips and offers services that are primarily geared towards its installed systems base. ASML Holding reported first quarter earnings for fiscal … Read more

Don’t Throw the Baby Out with the Bathwater

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Image: Erica Nicol Takeaways: Junk tech should continue to collapse, but the stylistic area of large cap growth and big cap tech should remain resilient. Moderately elevated levels of inflation coupled with interest rates hovering at all-time lows isn’t a terrible combination. In fact, it’s not bad at all. The markets are digesting the huge gains of the past few years so far in 2022, and the excesses in ARKK funds, crypto, SPACs, and meme stocks are being rid from the system. Our best ideas are “outperforming” the very benchmarks that are outperforming everyone else. The BIN portfolio is down 6.4% and the DGN portfolio is down 3.2% year to date. The SPY is down 7.8%, while the average investor … Read more

Net Cash Rich Micron Technology Beats Estimates and Issues Favorable Near Term Guidance

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Image Source: Micron Technology Inc – First Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On December 20, Micron Technology Inc (MU) reported first quarter earnings for fiscal 2022 (period ended December 2, 2021) that beat both consensus top- and bottom-line estimates. Underlying demand for Micron Technology’s DRAM, NAND, and NOR offerings (used as memory solutions in personal computers, automobiles, data centers, smartphones, and various electronics devices) remained robust last fiscal quarter. The company has done a great job navigating supply chain hurdles and semiconductor component and equipment shortages in the wake of the coronavirus (‘COVID-19’) pandemic to continue meeting booming customer demand.  Shares of Micron Technology surged higher after it published its latest earnings report December 20 … Read more

Hard Work and the Trust That Binds

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Image Source: Terry Johnson By Brian Nelson, CFA We’ll have our traditional Valuentum Weekly email coming out on Sunday, and I’m excited to say our team is putting the finishing touches on our technology industry update, so we’ll have a whole bunch of fresh reports for you to look at Sunday evening/Monday morning. It’s easy to forget how much we’ve been through the past two years. Often, we forget how helpful the warning that markets were going to crash was the weekend before they did on February 22, 2020, “Is a Stock Market Crash Coming? – Coronavirus Update and P/E Ratios,” how we thought dollar-cost-averaging made sense at the bottom in March 2020, and how we went “all-in” in April … Read more

ASML Holding’s Bright Growth Outlook

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Image Shown: Shares of ASML Holding NV are booming higher as demand for its photolithography systems, a crucial part of the semiconductor supply chain, continues to grow at a robust pace. By Callum Turcan On October 20, Netherlands-based ASML Holding NV (ASML) announced third quarter fiscal 2021 earnings (period ended October 3, 2021) that saw its GAAP revenues (in Euro terms) grow by 32% year-over-year to reach $5.2 billion. The firm designs and manufactures photolithography systems that are used to produce semiconductor components, a crucial part of the semiconductor supply chain. At the higher end of things, ASML Holding operates in a virtual monopoly given that the firm is leaps and bounds ahead of the competition when it comes to … Read more

Qualcomm Explodes Higher Towards Our Fair Value Estimate; Semiconductor Supply Chain Update

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Image Source: Qualcomm’s shares have surged toward our fair value estimate. We continue to like shares of this dividend growth giant. By Brian Nelson, CFA  On November 3, communications chip-maker Qualcomm (QCOM) reported strong results for its fiscal fourth quarter (the calendar third quarter), rounding out an excellent fiscal 2021. We’re reiterating our $170 per share fair value estimate for QCOM and the company as an idea for long-term dividend growth investors. Shares yield ~1.7% at the time of this writing. The growth rates in revenues, earnings before taxes (EBT), net income, and diluted earnings per share (EPS) were fantastic for the fiscal year. On a GAAP basis, revenues leapt 43%, EBT advanced 80%, net income jumped 74%, while EPS … Read more

Large Cap Growth Has More Room To Run

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“The stylistic area of large cap growth has been one of our favorite areas because of the strong net cash rich, free cash flow generating, secular growth powerhouses that make up much of the space. The image is a rundown of the key Valuentum statistics for the top 15 holdings of the Schwab U.S. Large Cap Growth ETF (SCHG). We believe where large cap growth goes, so does the broader market, considering the hefty weightings of some of these stocks in other broad-based indices. Based on the high end of our fair value estimate range for this group of bellwethers, the broader U.S. markets still have room to run, to the tune of 7%+, despite the many highs already reached … Read more