MRVL

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

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

Intel’s Huge Expected Capital Spending Gives Dividend Growth Investors Pause

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Image: Intel has advanced nicely during the past several years, but more recently, its choppy stock behavior is reflective of the market having trouble figuring out the future direction of this tech behemoth, particularly in light of encroaching competition and huge expected capital spending growth. Shares offer investors a healthy 2.8% dividend yield, however, which gives the stock a sturdy foundation for the time being. By Brian Nelson, CFA As we noted in our prior update on Intel (INTC) earlier this year, we removed the tech giant from the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio in late October 2020, almost a year ago to the date. Since that time, shares of Intel, on a price-only basis, have … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

Following Up on Leading Semiconductor Equipment Supplier ASML Holding N.V.

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Image Source: ASML Holding NV – Fourth Quarter and Full-Year 2020 Earnings IR Presentation By Callum Turcan Shares of Netherlands-based ASML Holding NV (ASML), which supplies lithography systems and services to the semiconductor industry, have done incredibly well since we published our ASML Holding Is an Impressive Enterprise with a Pristine Balance Sheet and Rock-Solid Growth Trajectory article back on April 8, 2020 (link here). From April 8 to January 22, shares of ASML more than doubled. We strongly encourage members that have not done so to check out that article, as we laid out how ASML Holding’s lithography systems are an essential part of the semiconductor industry along with our reasoning behind why we view the company’s long-term 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

Our Thoughts on Apple Launching Its First-Ever 5G-Capable iPhone

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Image Shown: Shares of Apple Inc have surged higher year-to-date. By Callum Turcan On October 13, Apple Inc (AAPL) announced its first-ever lineup of 5G-capable iPhones along with a new smart home speaker offering HomePod Mini. While the 5G-capable iPhone announcement was largely expected, we appreciate the good news all the same. We include shares of Apple as a holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios and are big fans of the name. The HomePod Mini offering represents Apple’s way of staying competitive with similar offerings from Amazon Inc (AMZN) and Alphabet Inc (GOOG) (GOOGL). The Big News Apple’s four new iPhone offerings (iPhone 12 mini, iPhone 12, iPhone 12 Pro, and iPhone 12 Pro … Read more

Our Thoughts on Nvidia Acquiring Arm

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Image Source: Nvidia Corporation – Nvidia to Acquire Arm IR Presentation By Callum Turcan On September 13, Nvidia Corporation (NVDA) announced it would acquire Arm Limited (a semiconductor company with a heavy focus on smartphones and gaming devices) from SoftBank Group Bank Corp. (SFTBY) and SoftBank’s Vision Fund through a transaction valued at approximately $40 billion. That deal will see Nvidia pay SoftBank and the Vision Fund $12.0 billion in cash (including $2.0 billion payable at signing), $21.5 billion in Nvidia stock (equal to 44.3 million shares at the time of the announcement, though that figure could change as it depends on NVDA’s average closing price over the last 30 trading days), and the deal has an earn-out component that … Read more