Today's Research on Taiwan Semiconductor and Analog Devices: Semiconductor
Stocks on the Roll
LONDON, February 4, 2013
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:
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
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
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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