|Bid||0.00 x 3200|
|Ask||53.68 x 800|
|Day's range||51.30 - 52.92|
|52-week range||33.83 - 77.67|
|Beta (3Y monthly)||2.19|
|PE ratio (TTM)||80.36|
|Earnings date||31 Jul 2019|
|Forward dividend & yield||2.00 (3.88%)|
|1y target est||52.35|
(Bloomberg) -- Toshiba Memory Corp., the world’s second-largest memory chipmaker that was spun out of its parent last year, is changing its name to Kioxia as it gears up for an initial public offering.By taking a new name, the semiconductor company is marking a clean break from its roots as a unit of Toshiba Corp., which retained a 40% stake after selling it to a group led by Bain Capital. Kioxia is an invented word that combines the Japanese word for memory — kioku — and axia, the Greek term for value. The new moniker takes effect Oct. 1 under the full name Kioxia Holdings Corp.“It’s really meant to denote a fresh start as an independent company,” said Stacy Smith, the former Intel Corp. chief financial officer who became chairman of Toshiba Memory last year. “We’re not running from our rich heritage.”Toshiba, a Japanese conglomerate founded in the 1800s, invented flash memory three decades ago. The chips are used to store data in iPhones and other smartphones, as well as gadgets such as USB drives and memory cards. Memory chips are also displacing hard drives in the data centers that power cloud-based computing services and internet businesses because of their speed and reliability. Toshiba had to sell the business to pay for losses at its bankrupt nuclear power unit.While Bain has made clear that it’s planning to hold an IPO for the business by mid-2021, local media have reported that it may file for a public sale as soon as this summer or September. The investor has hired banks including Nomura Holdings Inc. and Mitsubishi UFJ Financial Group Inc. to handle the IPO, people familiar with the matter have said. Smith declined to comment on the timing of the planned IPO.Separately, Smith said the company’s main factory, which was hit with a power outage on June 15, would return to full production capacity over the next several weeks. Equipment at the plant, in Yokkaichi, Japan, is already back online and is now being ramped up, he said. The disruption also impacted Western Digital Corp., its manufacturing partner at the plant.“The silver lining to that one was it happened in a time when supply was ahead of demand,” Smith said. “That’s helping us to minimize the impact on our customers.”Although Toshiba was the leader in NAND flash memory, it was outspent over the years by the likes of Samsung Electronics Co. The South Korean electronics conglomerate controlled 30% of the market at the end of 2018, followed by Toshiba with about 19%, according to researcher TrendForce Corp. The industry is now shifting to so-called 3-D NAND, which Toshiba believes gives it an edge against Samsung.Asked about recent trade tensions between Japan and South Korea, and the potential impact on memory prices, Smith said he didn’t see any impact that diverged from industry forecasts.Toshiba has been increasing investments at its Fab 6 chip facility in Yokkaichi, and also announced plans to build a new plant in the northern prefecture of Iwate that will begin mass production in 2020.\--With assistance from Yuki Furukawa.To contact the reporter on this story: Jason Clenfield in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Reed StevensonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
IntelliFlash Family Additions and OS 3.10 Enhancements Deliver Industry’s Highest Performing NVMe™ All-Flash Arrays with Superior Capabilities to Streamline Mission-Critical Worklo
Western Digital (WDC) closed the most recent trading day at $54.26, moving +0.41% from the previous trading session.
Memory stocks have been on the rise since June 25, when chip maker Micron Technology reported better-than-expected earnings results.
Western Digital Corp. plans to announce financial results for its fourth fiscal quarter ended June 28, 2019, after the market closes on Wednesday, July 31, 2019. The investment community conference call to discuss these results will be held that day at 2:30 p.m.
This morning, US index futures surged after Federal Reserve Chair Jerome Powell’s testimony raised the possibility of a near-term cut in interest rates.
Western Digital's (WDC) IntelliFlash portfolio will be integrated with SAP HANA's in-memory data processing capabilities to enhance productivity of business-critical applications.
SAP HANA Customers Gain Performance, Efficiency and Flexibility for Running Business-Critical Applications and Real-Time Analytics on IntelliFlash All-Flash Arrays
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. President Donald Trump’s decision to allow U.S. companies to continue selling to Huawei followed an extensive lobbying campaign by the U.S. semiconductor industry that argued the ban could hurt America’s economic and national security.In multiple high-level meetings and a letter to the Commerce Department, the companies argued for targeted action against Huawei Technologies Co. instead of the blanket ban the Trump administration imposed in May. That includes identifying specific technologies that the Chinese company shouldn’t be given access to, while allowing U.S. firms to supply the rest.The Semiconductor Industry Association, or SIA, a trade group that represents companies like Intel Corp., Broadcom Corp. and Qualcomm Inc., told the Trump administration that its sanctions against the Chinese company will make them appear to be unreliable partners, which will put them at a severe disadvantage globally.Representatives of chipmakers last month met with Commerce Secretary Wilbur Ross and Treasury Secretary Steven Mnuchin to argue that the decision to place the company on a so-called entity list could hurt the country, people familiar with the meeting said.In the letter seen by Bloomberg News, SIA said that the action risked cutting off its members from their largest market and hurting their ability to invest. At the same time, Huawei would in many cases be able to get components elsewhere, they argued.“Overly broad restrictions that not only constrain the ability of U.S. semiconductor companies to conduct business around the world, but also casts U.S. companies as risky and undependable, puts at risk the success of this industry, which in turn impacts our national security,” the group wrote last month. They added that the administration should take into account those factors when evaluating license applications from American firms.Their talking points seem to have found their way to Trump. After concluding a high-stakes meeting with Chinese President Xi Jinping in Osaka on Saturday, the U.S. president said American firms weren’t pleased with his Huawei policy and announced that he has agreed to let them keep shipping some of their components and technology.“I’ve agreed -- and pretty easily -- I’ve agreed to allow them to continue to sell that product so American companies will continue,” the president said during a press conference. “The companies were not exactly happy that they couldn’t sell because they had nothing to do with whatever was potentially happening with respect to Huawei. So I did do that.”He later clarified he will only allow them to sell “equipment where there is no great national emergency problem with it,” without offering more details. Trump’s comments stoked confusion among industry and analysts and the White House has not yet announced specifics on the path forward for U.S. companies doing business with Huawei.White House trade adviser Peter Navarro on Tuesday said Huawei’s involvement in 5G networks remains a "national security concern” but the sale of a “small amount of low-level chips” isn’t a “bad thing” if it persuades China to return to trade negotiations."5G is huge, selling a few chips to Huawei is not,” Navarro said in an interview on CNBC.While China hawks in Congress and Trump’s administration feared a potential reversal of the export ban, U.S. industry has been pushing the White House to ease restrictions that require American firms to get a U.S. government license in order to sell to the Chinese tech giant.A spokesman for SIA said the group has “consistently urged the administration to advance U.S. semiconductor leadership as it works to preserve national security, and we’re encouraged by the direction the president set in Osaka.”A Commerce spokesman said companies can submit license applications explaining the importance of exports on their business relationship. When a case is made for license approval based on concrete and supportable facts, decisions on those licenses are made. When data is absent, Commerce is unable to act, the spokesman said.Chipmakers have been placed in a tough spot by the trade dispute and security-related action against Huawei. China is their biggest market, providing about a third of revenue. They’re arguing that not all exports to Huawei and its affiliates pose a security risk and that much of what’s sold there is easily replaceable with non-U.S. products. Given the massive cost of research and development for chips, continuing to miss out on revenue could hurt their competitiveness.Their concerns were stoked by China’s response to Trump’s Huawei ban. In May, Beijing threatened to compile a list targeting companies that it says are not dependable suppliers. American firms were also spooked when Chinese government officials called them in for meetings and threatened to add them to the list if they don’t make sure the U.S. eases up on its ban, people briefed on the meetings said.The chip industry’s proposed solution is to ask for a narrower set of restrictions, according to people involved in the negotiations with U.S. government representatives. They argued that there are choke points -- crucial pieces of technology, that if withheld could slow down Huawei without totally crippling it. In many cases, providing chips without the engineering support and software needed to integrate them in devices is enough, the people said.Micron, IntelIn the letter the SIA highlighted several areas that don’t warrant a blanket ban. The memory chip industry is dominated by Korean makers with a 68% market share of the commodity products. That means if Micron Technology Inc., Intel and Western Digital Corp. are excluded from China, they will directly lose market share, the group argued.In analog chips, simpler components that convert things like sound and radio waves into digital signals, the U.S. owns 65% of the market. European and Japanese companies have ‘viable substitutes’ that Chinese customers could use. And even in logic chips, where companies such as Intel and Qualcomm have won the U.S. a 69% stranglehold, Huawei’s own HiSilicon chip unit is among a list of alternative providers that could offer replacements for crucial components of smartphones, computers and networking gear.National Economic Council Director Larry Kudlow said Sunday that the granting of licenses only applies to general merchandise. “Anything to do with national security concerns will not receive a new license from the Commerce Department. I think that’s very important.”Still, the Trump administration’s end goal remains unclear. Trump said he will only make a decision on what to do about Huawei when trade talks are in the final stages. “We’ll have to save that until the very end,” he said.(Updates with comments by Navarro from 10th paragraph.)\--With assistance from Margaret Talev.To contact the reporters on this story: Jenny Leonard in Washington at firstname.lastname@example.org;Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Brendan Murray at firstname.lastname@example.org, Sarah McGregor, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On July 1, we saw several semiconductor stocks rally. The VanEck Vectors Semiconductor ETF rose 2.8%, while the iShares PHLX Semiconductor ETF rose 4.4% on the day.
Western Digital Corp. shares are off 3.1% in premarket trading Tuesday after Benchmark analyst Mark Miller downgraded the stock to sell from hold. "While we believe Western Digital should be able to lever the supply short-fall into higher prices over the short-term, we also believe any price increases likely won't be enough to offset an expected 50% decline in NAND output during F1Q20 and they likely won't be sufficient enough to offset the 1H19 price declines during FY20," he wrote. "So while we see reasons for optimism, we think the recent pricing assumptions appear to be more than fully factored into the stock." Western Digital shares gained in the wake of Micron Technology Inc.'s better-than-feared earnings report in late June as well as last week, after WDC announced a power outage at one of its facilities that was expected to help relieve the industry's inventory buildup. Miller set a $40 price target on the shares, which have climbed 33% over the past month, as the S&P 500 has climbed 7.7%.
(Bloomberg) -- Shares of semiconductor companies and other suppliers to Huawei Technologies Co. spiked on Monday, after President Donald Trump said he would delay trade restrictions against the China-based company, suggesting an easing to one of the biggest headwinds facing the group.The Philadelphia Semiconductor Index jumped as much as 5%, putting the industry benchmark on track for its highest close since early May, as well as its fourth straight positive session. While the index is still about 4.3% below record levels, it has surged more than 17% off a low from late May. Among notable gainers, Western Digital Corp. spiked as much as 7.4% in what was set to be its 10th positive session, its longest rally since a 10-day gain that ended in March 2018. WDC, which gets about 4.3% of its revenue from Huawei, according to supply chain data compiled by Bloomberg, has surged nearly 41% over the 10-day rally.Micron Technology jumped 8.1%. The company gets 13% of its revenue from Huawei.Chipmakers were broadly higher across the globe, supported after the U.S. and China declared a truce in their trade war over the weekend. The industry has been highly correlated to this issue, given that China is both a major market for companies, as well as a critical part of their supply chains.Separately, Lam Research was up 3%, and U.S.-listed shares of ASML Holding NV rose 3.6%. Applied Materials rose 5.9%; the company earlier announced it would buy Kokusai Electric from KKR & Co. in a deal worth about $2.2 billion.RBC Capital Markets analyst Mitch Steves wrote that he viewed the Huawei announcement “as a large positive for the semiconductor industry even though it is unclear if the lift will be permanent in nature.”He added that the implications of the announcement were “unclear for Nvidia, AMD and Analog Devices given that their products represent potential security risks.” Nevertheless, these names were were also among the day’s gainers.Nvidia rose 5.9%, Advanced Micro Devices climbed 5.5%, and Analog Devices gained 4.7%.Among other major Huawei suppliers, NeoPhotonics Corp. -- which gets nearly half its revenue from Huawei -- spiked nearly 22%. Lumentum Holdings jumped 9%; more than 18% of its revenue is derived from Huawei.Semiconductor stocks have performed well throughout the first half of 2019, despite waning optimism that they could see improvements in such key issues as demand, pricing and inventory levels over the remainder of the year.(Updates trading to market open throughout, adds chart.)To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Steven Fromm, Janet FreundFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Tech stocks, especially semiconductor stocks, are set to rally on July 1 due to expectations that negotiations between Donald Trump and Xi Jinping will progress.