NINOY

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

Broadcom’s Financials Are Stabilizing

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Image Source: Broadcom Inc – June 2020 IR Presentation By Callum Turcan On June 4, Broadcom Inc (AVGO) posted second quarter earnings for fiscal 2020 (period ended May 3, 2020). Shares of AVGO are trading in the upper bound of our fair value estimate range and appear reasonably priced as of this writing considering the relatively favorable forward-guidance management offered for the fiscal third quarter. Though the ongoing coronavirus (‘COVID-19’) pandemic is negatively impacting Broadcom’s operations with an eye towards “challenges” at the firm’s supply chain, the company’s growing ‘Infrastructure software’ segment appears to be helping stabilize its financial performance. We give Broadcom a Dividend Cushion ratio of 1.0, earning the firm a “GOOD” Dividend Safety rating (these metrics factor … Read more

Covering the US-China “Technological Arms Race”

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Image Shown: The future of geopolitical tensions will likely boil down to what some see as a “technological arms race” between the US and China. Image Source: Nvidia Corporation (NVDA) – May 2020 Presentation By Callum Turcan Given the rise of US-China geopolitical tensions, we wanted to cover the changing state of the semiconductor industry and the rare earth minerals landscape. Recent announcements from Taiwan Semiconductor Manufacturing Company Limited (TSM) or ‘TSMC’ caught our eye. For some background, in the world of semiconductors, there are what is referred to as fabrication facilities and foundries. The former is used to make chips for internal purposes while the latter contracts out its production capacity to third parties to make chips for external purposes. … Read more

ASML Holding Is an Impressive Enterprise with a Pristine Balance Sheet and Rock-Solid Growth Trajectory

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Image Source: ASML Holding NV – 2019 Annual Report By Callum Turcan Netherlands-based ASML Holding NV (ASML) supplies lithography systems and services to the makers of semiconductors and semiconductor components, primarily to firms with operations in East Asian and US markets. The firm’s stock price has rebounded sharply since the middle of March 2020, and as of this writing, shares of ASML yield ~1.1% (due to the firm paying out its dividend in euro, there are foreign currency effects to be aware of). We like ASML’s focus on innovation, its pristine balance sheet, rock-solid growth trajectory, and quality cash flow profile. Given the complexities of this company and the space it caters to, we will provide an overview of its … Read more

Good News for Intel

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Image Source: Intel Corporation – January 2020 Presentation By Callum Turcan In this article, we cover recent events in the semiconductor industry and how a bill that was just introduced in the US Congress could positively impact Intel Corporation (INTC). We include shares of INTC as a holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios and continue to like the company for numerous reasons that we will cover in this piece. Shares of INTC yield ~2.2% as of this writing. Introducing the CHIPS for America Act On June 10, a bipartisan group of US lawmakers introduced a bill that would support the existing domestic semiconductor manufacturing industry and encourage a new production facility to be built … Read more