46.92 +0.32 (0.69%)
Pre-market: 7:40AM EDT
|Bid||46.92 x 3200|
|Ask||47.12 x 900|
|Day's range||46.46 - 47.12|
|52-week range||42.36 - 59.59|
|Beta (3Y monthly)||0.66|
|PE ratio (TTM)||10.82|
|Earnings date||24 Oct 2019|
|Forward dividend & yield||1.26 (2.70%)|
|1y target est||53.13|
AMD stock is popular among investors, as is evident from its 180% increase since January 2018. Investors are betting on its market share gain from Intel.
CPU market share figures show a positive trend for AMD and a negative trend for Intel. AMD is up 80% for the second straight year and is still growing.
Intel Corp on Tuesday unveiled its latest processor that will be its first using artificial intelligence (AI) and is designed for large computing centres. The chip, developed at its development facility in Haifa, Israel, is known as Nervana NNP-I or Springhill and is based on a 10 nanometre Ice Lake processor that will allow it to cope with high workloads using minimal amounts of energy, Intel said. Facebook, it said, already has started using the product.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. When Japan decided to step up its fight with South Korea last month, it dug deep into the supply chain to impose sanctions on three obscure materials made by a handful of Japanese companies few have ever heard of.The most powerful weapon in Tokyo’s campaign against its neighbor turned out to be a half-dozen or so niche firms with names like JSR Corp., Shin-Etsu Chemical Co. and Tokyo Ohka Kogyo Co. They make fluorinated polyimide, hydrogen fluoride and photo-resist: essential ingredients for the manufacture of the displays and semiconductors that go into every piece of modern consumer electronics, from Apple Inc. iPhones and Dell Technologies Inc. laptops to the full range of Samsung Electronics Co. devices. Japan prohibited the export of those materials, allowing an exception only if suppliers secure a license and renew that license regularly.How did they become so indispensable? And how did they manage to stay on top even after their Japanese clients ceded the chip and display markets to Taiwanese and South Korean rivals? The answer lies in a series of well-timed investments decades ago, combined with a willingness to explore foreign markets and an unceasing refinement of manufacturing standards too exacting for anyone else to try and match.“JSR is an interesting case in that they became big in photo-resists because they succeeded overseas first,” said Damian Thong, an analyst at Macquarie Group Ltd. “And much of this success was because of the strategy of one man — Mitsunobu Koshiba.”The JSR chairman’s story shows just how hard it would be for a newcomer to fill the shoes of one of these suppliers. Koshiba spearheaded the company’s pivot into photo-resists, a light-sensitive liquid used to imprint circuits as narrow as a few strands of DNA onto silicon wafers in a process called lithography. Gadgets keep getting slimmer, more powerful and cheaper because chip companies are able to etch ever smaller circuit patterns onto silicon. When it comes to the most advanced chip processes, JSR is one of the few that can deliver the goods.When 25-year-old Koshiba joined JSR in 1981, the company’s biggest business was still tire rubber. (The name is an abbreviation of Japan Synthetic Rubber.) As luck would have it, photo-resist at that time used resins that JSR had access to for its existing business, and the company saw an opportunity to break into a new growth industry. Japanese semiconductor makers were just beginning their rise to global dominance, and suppliers were positioning themselves to go along for the ride.The problem for JSR was it didn’t belong to any of the local keiretsu, a grouping of suppliers that receives preferential access to contracts. And the company was also up against Tokyo Ohka or TOK, the first in Japan to manufacture photo-resist. By the mid-1980s, TOK controlled as much as 90% of the domestic market.“As a neutral company without keiretsu affiliations, we had to look outside Japan,” Koshiba said in an interview, outlining JSR’s decades-long rise but declining to talk in detail about sensitive trade negotiations now underway between Tokyo and Seoul.JSR’s decision to get into that market was bold but Koshiba seemed like the right person for the job. He’d spent two years studying materials science at the University of Wisconsin-Madison on a Rotary Club scholarship, was one of the few English speakers at the company and was eager to work abroad. In 1990, JSR sent him to Belgium to set up a photo-resist joint venture with the country’s biopharmaceutical giant UCB SA. The goal was to target the American market.As timing would have it, JSR was going overseas just as Japan was approaching the peak of its semiconductor prowess. That same year, NEC Corp., Toshiba Corp. and Hitachi Ltd. were the world’s biggest chipmakers, pushing aside Intel Corp. and Texas Instruments Inc. Japanese firms occupied six spots in the industry’s top 10 ranking by revenue, a level of concentration that hasn’t been matched by any country since, according to IC Insights.Japan’s seemingly unshakable control of the computer memory market gave the country renewed national confidence. The mood was reflected in the book “The Japan That Can Say No,” in which right-wing politician Shintaro Ishihara and Sony Corp. co-founder Akio Morita argued for a more muscular foreign policy. In an eerie echo of recent events, the authors contended that the Japanese government had the power to determine the outcome of the Cold War just by directing its national companies to sell the chips used in intercontinental ballistic missiles (ICBMs) to the Soviets instead of the U.S.But the Cold War ended before that theory could be tested. Over the following decade, personal computers overtook ICBMs as the primary destination for chips and demand shifted to prioritize low unit costs over military-spec quality. By 2006, Samsung had risen to No. 2 on the list of the world’s biggest chipmakers, with Korean compatriot SK Hynix Inc. ranking seventh and only three Japanese names remaining among the top 10.For JSR, the turning point came in 2000. Koshiba, who was based in California at that time, recalls being dragged into an emergency meeting on a Sunday wearing a T-shirt and shorts. Word was a rival company was about to clinch an agreement with IBM for joint research on a next-generation photo-resist material. “Get it back,” he was told. Koshiba leaned on the network of American industry contacts he had spent a decade building, people who had known him through the worst of U.S.-Japanese trade tensions. Within a month, IBM signed with JSR.“Without that deal, we wouldn’t have gotten to No. 1,” Koshiba said.In lithography, the formula for shrinking transistors has only two levers: increase the light power or use a lens that lets more light through. Every time the chip process shifts to a higher-energy band of light, resist makers have to go back to the drawing board, opening up new opportunity. The research partnership with IBM ushered in the fourth such shift since integrated circuits replaced vacuum tubes in the 1970s, and JSR rode it all the way to the top.The company now commands about 40% of the market for the latest generation of resist used in mass production. It also supplies more than 30% of the photo-resist for 3D NAND, the most advanced flash memory chips, which are among the few product lines where Japan still competes with Korean rivals. In 2019, JSR is expected to generate about three times the revenue and five times the profit it did in the early ‘90s.What makes this business inaccessible to newcomers is the extreme degree of purity and quality demanded by customers. TOK says a single drop of coffee in two Olympic-sized swimming pools would be considered an unacceptable defect. JSR’s analogy is to a handful of tainted golf balls being enough to spoil a batch the size of the entire Japanese archipelago.In addition to being technically challenging, the markets these companies operate in are small and don’t promise fantastic growth. According to research firm Fuji Keizai Group, the industry’s sales rose just shy of 8% last year to $1.3 billion. Koshiba jokes that even the market for ramen noodles is bigger than that.“To recreate JSR, you basically need to spend as much as they did in the past 20 years on R&D and relationships, and also rebuild their reputation,” Macquarie’s Thong said. “These materials are used in such moderate quantities that to rebuild the whole infrastructure is probably not worth the investment.”And that’s the irony of the current situation. By stoking trade tensions, Japan may encourage its neighbor to subsidize competition to JSR and TOK that wouldn’t make sense under normal market conditions. It’s a matter of survival: Korean corporations now depend on Japan for over 90% of all the fluorinated polyimide and resists they need, and 44% of hydrogen fluoride requirements, Societe Generale estimates.Read more: Japan Grants South Korea Export License, Lessening Trade FearsFor the time being, JSR and TOK retain dominance over one prized material that keeps the consumer electronics industry ticking. According to South Korean Prime Minister Lee Nak-yon, Japan has approved exports of photo-resist for the next-generation of lithography currently under development by Samsung and Taiwan Semiconductor Manufacturing Co. But one of Japan’s last strongholds of tech industry domination may be under threat.“They have the engineers, and once national pride is involved they can possibly make it even if it loses money,” Koshiba said. “We don’t have an impregnable wall.”\--With assistance from Jason Clenfield.To contact the reporters on this story: Pavel Alpeyev in Tokyo at firstname.lastname@example.org;Yuki Furukawa in Tokyo at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Micron Technology (MU) started the mass production of 16Gb DDR4 products using 1z nm (nanometer) process technology. MU has returned over 37% YTD.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. will extend for another 90 days a limited set of exemptions that had protected rural networks and other U.S. customers from a ban on doing business with China’s Huawei Technologies Co., Commerce Secretary Wilbur Ross said Monday.Some telecom companies in the U.S. are “dependent” on Huawei, and so a 90-day reprieve was deemed appropriate, Ross said in an interview with Fox Business’s Maria Bartiromo. Still, the U.S. also added more than 40 Huawei affiliates to a trade blacklist.“We’re giving them a little more time to wean themselves off,” he added. Ross said the next deadline will be around Nov. 19. He added that Commerce decided to place 46 more Huawei subsidiaries on its entity list.The announcement doesn’t address the wider national-security concerns about Huawei and answer the bigger question of whether U.S. chip companies and other major suppliers will be allowed to sell parts to China.Huawei said in a statement that the temporary relief “does not change the fact that Huawei has been treated unjustly. Today’s decision won’t have a substantial impact on Huawei’s business either way.” The move to add more of Huawei’s affiliates to the so-called Entity List “at this particular time, is politically motivated and has nothing to do with national security,” the company said.QuickTake: How Huawei Became a Target for GovernmentsPresident Donald Trump over the weekend indicated the U.S. was “doing very well with China, and talking” but also suggested he wasn’t ready to sign a trade deal.U.S. stocks rallied Monday after the Trump administration signaled progress on trade negotiations and Ross announced the extension. Huawei, China’s largest technology company by sales, has been at the heart of worsening tensions and been called a bargaining chip in thorny trade negotiations between Washington and Beijing. Trump had said he anticipated talking with Chinese President Xi Jinping “very soon” and the Huawei move may sweeten the tone of those discussions.Huawei, for its part, has been trying to carry on operations in face of U.S. sanctions on the sale of the vital technology. The company this month announced its in-house HarmonyOS, an open-source operating system that could one day serve as a replacement for Google Inc.’s Android if its access to that software is curtailed.Without Android or the numerous American silicon, technology and consultancy suppliers that Huawei does business with, many of its most promising product lines would either cease their rapid growth or be thwarted entirely.Rural AreasThe U.S. Commerce Department previously granted a three-month temporary license to Huawei’s U.S. customers shortly after the Trump administration blacklisted the Chinese company. That allowed telecom carriers in rural areas to continue using Huawei equipment and Google to provide only key Android security updates to Huawei phones.The latest extension came after Trump met in July with the chief executives of key Huawei suppliers from Alphabet Inc.’s Google and Broadcom Inc. to Intel Corp. and Qualcomm Inc. to discuss economic issues including a possible resumption of sales to Huawei. U.S. companies argued that Huawei will turn to non-American suppliers if sanctions persisted, hurting the U.S. in the long run. But trade talks with Beijing ground to a halt and China refused to resume purchases of American agricultural products.National SecurityThe announcement Monday came one day after Trump suggested that Huawei was unlikely to receive another extension, pushing back against news reports about an expected reprieve.“At this moment, it looks much more like we’re not going to do business,” Trump told reporters on Sunday in New Jersey. “I don’t want to do business at all, because it is a national security threat.”The president tied trade negotiations with the ongoing situation in Hong Kong, saying that a deal between the U.S. and China would be harder if there’s a violent conclusion to protests there because of concerns raised by U.S. lawmakers.Earlier this month, the trade war between the two countries intensified as the U.S. announced a next round of 10% tariffs on Chinese imports between Sept. 1 and Dec. 15. China responded with a boycott of American farm products and allowed its currency to weaken, signaling that this can help cushion the tariff blow.(Updates with Huawei reaction in fifth paragraph.)\--With assistance from Gao Yuan and Kasia Klimasinska.To contact the reporters on this story: Vlad Savov in Tokyo at email@example.com;Jordan Fabian in New York at firstname.lastname@example.org;Shawn Donnan in Washington at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Elizabeth Wasserman, Sarah McGregorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
HP's (HPQ) third-quarter fiscal 2019 results are likely to be driven by growth in its commercial PC revenues amid waning consumer demand.
(Bloomberg) -- In the semiconductor industry, bigger is not usually better. For 60 years, chip companies have strived to make the brains of computers as tiny as possible.Startup Cerebras Systems will turn this maxim on its head on Monday when it unveils a processor measuring roughly 8 inches by 8 inches. That’s at least 50 times larger than similar chips available today.The logic behind going big is simple, according to founder Andrew Feldman. Artificial intelligence software requires huge amounts of information to improve, so processors need to be as fast as possible to crunch all this data -- even if that means the components get really chunky.The company’s Wafer Scale Engine chip is large because it has 1.2 trillion transistors, 400,000 computing cores and 18 gigabytes of memory. (A typical PC processor will have about 2 billion transistors, four to six cores and a fraction of the memory).“Every square millimeter is optimized for this work,” Feldman said. “AI work is growing like crazy. Our customers are in pain.” The biggest limitation of current AI systems is that it takes too long to train software, he added.Feldman has experience and industry backing that’s essential to tackling an engineering problem of this magnitude, he said. He co-founded server maker SeaMicro Inc. and sold it to chipmaker Advanced Micro Devices Inc. for more than $300 million in 2012. Cerebras has raised over $100 million from Silicon Valley investors including Benchmark, Andy Bechtolsheim and Sam Altman. Feldman has a team of 174 engineers and Taiwan Semiconductor Manufacturing Co. -- Apple Inc.’s chipmaker of choice -- is manufacturing the massive Cerebras processor.Cerebras won’t sell the chips because it’s so difficult to connect and cool such a huge piece of silicon. Instead, the product will offered as part of a new server that will be installed in data centers. The company said it has test systems working at several large potential customers and will start shipping the machines commercially in October.The AI chip market includes Nvidia Corp., Intel Corp. and U.K. startup Graphcore Ltd. Google has been so keen to speed up AI progress that the internet giant developed its own special chips called Tensor Processing Units.Nvidia was the last company to successfully bring new semiconductor technology into servers, the machines that run data centers that Google, Facebook Inc. and others use to run internet services. Nvidia now gets almost $3 billion a year in revenue from the business, which took years and thousands of engineers to build, according to Chief Executive Officer Jensen Huang.“It takes a long time to be successful in data center,” he said in an interview last week.To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair Barr, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.
Qualcomm and Apple have turned the page and are partnering on 5G chip service, according to Qualcomm CEO Steve Mollenkopf.
Investing.com -- U.S. stock futures were set to claw back more of their midweek losses on Friday, as the absence of fresh geopolitical shocks allowed the market to build on gains that began on Thursday with a batch of generally positive U.S. economic data.
Investing.com - Wall Street clawed back more of their midweek losses on Friday in the absence of fresh geopolitical shocks, but were still on course for a third straight weekly loss against the backdrop of a slowing global economy.
(Bloomberg) -- Nvidia Corp.’s second-quarter sales and profit topped analysts’ estimates, suggesting that a slump in orders may be easing amid a revival in demand for graphics chips and parts used in data centers. The stock rallied in late trading.Revenue in the quarter that ended July 28 was $2.58 billion and profit excluding certain costs was $1.24 a share, the Santa Clara, California-based company said in a statement on Thursday. Analysts, on average, had estimated adjusted earnings of $1.14 a share on sales of $2.54 billion.Sales in all business lines rose from the previous quarter, Nvidia said, a sign the company is addressing challenges that had stalled growth. Chief Executive Officer Jensen Huang has argued that a slowdown in orders for computer-gaming chips and processors for artificial intelligence tasks was temporary as customers worked through stockpiles of unused parts.Revenue has now shrunk from a year earlier for three straight quarters, and Nvidia forecast another decline of about 9% for the current period. Still, the 17% contraction in the second quarter was narrower than some analysts had projected, and the rate of decline is slowing. That may indicate customers are beginning to place new orders again.Gaming-chip sales came in at $1.3 billion, up 24% sequentially. Revenue from Nvidia’s second-biggest business, data center, climbed 3.3% from the prior period to $655 million.According to some estimates, that rebound in data-center revenue fell short. Wells Fargo analyst Aaron Rakers had predicted unit sales of $685 million, and he wrote in a note that the consensus estimate was about $669 million. On a conference call to discuss results, Nvidia executives faced multiple questions on the prospects for the business.On the call, Huang said demand for graphics chips used in servers was improving across the board, excluding a couple of so-called hyperscale data-center operators who don’t give Nvidia much insight into their plans. He declined to say when the business will return to annual growth, but maintained his optimism that artificial intelligence computing is the biggest-ever opportunity for his company.Nvidia’s detractors say that stiffer competition is the cause of the company’s struggles, but Huang said rivals aren’t eroding growth. Nvidia pioneered the use of graphics chips to run AI software in data centers, while Nvidia GeForce processors have been the main choice for PC gamers wanting the highest resolution action. Now, Intel Corp. and Advanced Micro Devices Inc. are offering rival products in these markets.“The competition should show up with something,” he said in an interview. “AI is going to be a large market for everybody and the growth is ahead of us. The bottom is behind us.”Nvidia shares rose more than 6% in extended trading following the report. Earlier, they slipped about 1% to close at $148.77 in New York.Net income in the second quarter was $552 million, or 90 cents a share, down from $1.1 billion, or $1.76, in the same period a year earlier.The company said sales in the current period will be about $2.9 billion, plus or minus 2%. That compares with an average analyst estimate for revenue of $2.98 billion, according to a Bloomberg survey. Adjusted gross margin will be 62.5%, Nvidia said.(Updates with CEO comments in eighth paragraph)To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Qualcomm is committed to building a sustainable fifth-generation cellular network (5G), which CEO Steve Mollenkopf says will have a big impact on the American consumer.
As US semiconductor companies firms adjust their supply chains to avoid tariffs, they are coming to terms with the trade restrictions on Huawei.
Currently, institutional investors own 71.2% of AMD's shares. Institutional investors like AMD stock more than Intel (INTC) and Nvidia (NVDA).