Today's Research on Taiwan Semiconductor and Analog Devices:
Semiconductor Stocks on the Roll
LONDON, February 4, 2013 /PRNewswire/ --
Semiconductor
industry has been a victim of PC downturn, but the situation is not
dire for all the companies. Up and coming semiconductor companies,
especially in the mobile segment, are thriving well. These
companies are able to grow on the back of rising demand for mobile
phones and tablets. Taiwan Semiconductor Manufacturing Co. Ltd.
(NYSE: TSM) reported its quarterly results and grew its revenue 31
percent on year-over-year basis. It also increased its gross margin
by 2.5 percent. Analog Devices Inc. (NASDAQ: ADI) is expected to
report its earnings in mid-February. However, it is likely to
follow the trend and report healthy numbers. StockCall analysts
have recently posted two free technical analysis reports on the
industry covering Taiwan Semiconductor and Analog Devices. Sign up
now to access them: http://www.stockcall.com/signup
Taiwan
Semiconductor Clinches Apple Deal
Taiwan Semiconductor Manufacturing Co. Ltd. returned over 20
percent gain in 2012 and has been performing well since then. While
analysts are slashing their estimates for iPhone sales, Taiwan
Semiconductor is likely to benefit from its latest collaboration
with Apple. The company scored a big win as it managed to replace
Samsung to become Apple's production partner for A6X chips. After
being entrusted with the production of A6X chips, it is expected
that the company would be able to grab the deal for A7 chips as
well, as and when it comes to fructification. Register today and
download the free report on Taiwan Semiconductor Manufacturing at
http://www.StockCall.com/TSM020413.pdf
The move also shows strategic changes taking place in the
company, as Taiwan Semiconductor had earlier been reluctant to tie
a big portion of its capacity with just one client. It had also
been aggressively pursued by Qualcomm. Another notable change for
the company is its shift towards more innovation. Taiwan
Semiconductor is now looking to focus on providing technological
advanced products. It is a big change from its previous focus on
scaling up volumes.
Apart from providing good returns in the stock market, Taiwan
Semiconductor is also doing well with regard to its financial
numbers as it consistently grows its revenue and earnings. The
stock is trading at P/E ratio of a little over 17 and is below
industry average of 20. At this point, the stock does not seem to
have priced the impact of its Apple deal fully. Taiwan
Semiconductor also offers dividend yield of 2.8 percent, making
this stock even more attractive.
Analog Devices
Makes New 52-Week High
Analog Devices Inc. is currently on a bull-run and the stock is
touching a 52-week high. The company draws most of its revenue from
its Amplifiers division and converters. Unlike Taiwan
Semiconductor, Analog Devices has a wide customer-base and thus is
better placed to withstand the loss of clients. The company has
solid earnings per share, accompanied with strong free cash flow
situation. Read the free analysis on Analog Devices by registering
today at http://www.StockCall.com/ADI020413.pdf
Analog Devices offers 2.72 percent dividend yield, which is more
or less in-line with its peers. However, the company boasts of
considerably higher net margins when compared with its competitors
like STMicroelectronics and Texas Instruments. Analog's net margin
stands at about 24 percent while Texas Instruments' margin is at 13
percent.
Interestingly, the company CEO sold a large chunk of his holding
in December, 2012, but the move may be a simple step to cash in on
the recent up moves of the stock, as the company still displays
strong fundamentals.
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