Tower Semiconductor, As Chip Manufacturing Gets Rerated

Tower Semiconductor Limited (NASDAQ: TSEM), an independent foundry services provider, is ready for a rerating with favorable industry tailwinds and significantly improved fundamentals. Now that the market has woken up to the potential offered by third-party semiconductor manufacturing service providers, as evident from the performance of Taiwan Semiconductor (NYSE: TSM) and United Microelectronics (NYSE: UMC), Tower should be next.     Even though its hard to quantify the full impact, most industry observers and companies in the space agree that trade restrictions on Chinese state-owned or backed entities have led to…

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Look At Synaptics, If You Missed On Nvidia And AMD

We recently bought shares of Synaptics Inc. (Nasdaq: SYNA) and included the name in our weekly list, a fabless semiconductor solutions provider, which we believe is standing at a beginning of a new multi-year cycle with a restructured portfolio of products for the consumer markets and a strong balance sheet that should allow the company to move aggressively in seizing opportunities to build its portfolio for higher growth and better margins. The stock performance of Nvidia Corporation (Nasdaq: NVDA) and Advanced Micro Devices Inc. (Nasdaq: AMD) over the last few…

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Stocks On My Screen For Week Starting August 3rd, 2020

Every week, our model comes up with 40 stocks, 20 positive and 20 negatives, to watch for next week’s trading. The model is based on a mix of fundamental and quantitative factors, built on our proprietary database of detailed earnings model on more than 1225 U.S. listed companies. The historical data for these earnings models is sourced from SEC filings. Performance of last week’s model portfolio was, Net: 0.87% Longs: 2.53% Shorts: -1.66% Assuming 5% is dedicated to each position, resulting in 0% net exposure and no change in position…

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Favorite 5G Stocks, Better To Position For Slower Transition

Transition to 5G is becoming a buzzword and almost every tech name is being touted as a potential beneficiary of the upcoming 5G transitions, be it networking equipment used by telecom companies, semiconductors used in that equipment, testing equipment needed while building up the network to applications that will be able to scale due to the technology itself. Ideally, for any new technology that has gained critical mass for adoption, we would rather focus on companies that could have meaningful revenue growth related to the rollouts and the stock has…

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Apple Decision May Hit Intel, But SOX Looks Strong Enough

There are various reports coming out suggesting Apple Inc (Nasdaq: AAPL) will announce using it own ARM-based chips for next generation Macs at WWDC 2020, away from current Intel processors. The shift will be negative for Intel (Nasdaq: INTC) and given Intel has the 10th largest weightage in the Philadelphia Semiconductor Index (Nasdaq: SOX), a negative for index as well. Other major concern for semiconductor stocks has been potential collapse in the broader economy, rumored delays in the launch of next generation iPhone and possible retaliation from China after U.S.…

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