Monolithic Power Systems, Inc. exceeded analysts expectations on Q3 earnings and revenue. The provider of power semiconductor solutions reported third-quarter 2019 non-GAAP earnings of $1.08 per share, which edged past the Zacks Consensus Estimate by a couple of cents.The EPS is also + 1.9% higher on a year-over-year basis. Revenues increased +5.5% year-over-year  to $168.8 million, beating Zacks Consensus Estimate of $165 million. While the company’s DC to DC segment (94.6% of total revenues) revenues increased +8.1% year-over-year, its Lighting Control (5.4% of total revenues) sales declined -25.8%. Computing & Storage (31.3% of total revenues) revenues increased +10.8%, thanks to successes from AI applications and high-end servers .

Intel beat earnings and revenue expectation for the third quarter, on stronger-than-expected sales across various business segments. The information technology giant reported third quarter earnings of  $1.42 per share, beating analysts’ expectation of $1.24 per share (based on Refinitiv poll of analysts).its PC-centric unit) declined -5% year-over-year  to $9.71 billion in the quarter, beating the $9.59 billion average estimate among analysts polled by FactSet. The company's Data Center Group, which focuses on server chips, garnered $6.38 billion in revenue, which exceeded the $5.62 billion FactSet consensus estimate. The segment grew +4% year-over-year for the quarter.

Advanced Micro Devices (AMD) shares jumped more than +3%, following a hike in price target by Morgan Stanley analysts.  The analysts at Morgan Stanley raised their price target on the semi-conductor company’s stock to $32 from $30. According to the Morgan Stanley analysts, AMD is likely to gain market share in every business segment next year, positioning itself as a strong competitor to both Intel and Nvidia, while spending a fraction of the R&D (research and development) that those two companies spend. Enthusiast desktop, servers for the largest scale cloud service providers, and data center graphics, primarily in cloud gaming are areas that the analysts expect AMD to gain the most from. While the analysts indicated that AMD should see gains in notebooks, on the back of a 7 nanometer-chip launch early next year, they also added, "But we have seen historically that it can take the mobile business longer to ramp."

Nvidia shares jumped, after Bank of America analyst re-iterated his rating. Bank of America analyst Vivek Arya affirmed the chipmaker’s stock at buy.That's the highest among Wall Street analysts, as reported by Bloomberg. In an Oct. 15 report, Arya mentioned that his confidence on Nvidia’s growth potential has increased due to what he perceives as strength of the company's natural language processing technology. "Nvidia's data-center growth is on the cusp of benefiting from the next-big artificial-intelligence landmark," the report said.  Nvidia is in a "prime position” to benefit from its portfolio of hardware, software and developer systems, as indicated by Arya.  

The next earnings season will be getting started in a couple of weeks when big banks report third quarter results.The following week, October 21-25, there will be a number of semiconductor companies reporting results and there are three in particular that undervalued based on the Tickeron Valuation Rating and have solid sales growth, profit margins, and return on equity. Texas Instruments (Nasdaq: TXN) is set to report on October 22.

Shares of Broadcom Inc. declined after-hours trading Tuesday, after the company announced a $3 billion offering in preferred/convertible shares. Accoring to the semiconductor company, the net proceeds from the offering will go towards repaying a part of  outstanding borrowings under Broadcom's existing term loan facilities on a pro rata basis. The $3 billion in Series A mandatory convertible preferred stock will give underwriters the option for an additional $450 million in shares to cover over-allotments.The preferred shares offering including over-allotments at Tuesday's closing price would represent an additional 12.2 million shares. The convertible preferred shares are set to convert into a variable number of shares of Broadcom's common stock on the conversion date of Sept. 30, 2022.

Nvidia were indicated lower on Friday after shares got downgraded by DZ Bank, while the latter also lowered price target. DZ Bank analysts lowered their rating on the chipmaker  to sell from hold.They also cut the 12-month price target (for the second time in less than six months) $158 a share from $170. Nevertheless, Nvidia has been going strong on sales of its chips, particularly in the artificial intelligence field. It also beat quarterly earnings estimates last month.

Broadcom reported quarterly earnings that surpassed analyst estimates, but with revenues slightly below expectations. For its fiscal third quarter, the semiconductor company’s adjusted earnings came in at $5.16 a share, beating Wall Street estimates of $5.13.GAAP earnings of $1.71 also were higher than forecasts of $1.21. Revenue in the quarter increased +9% year-over-year to $5.515 billion, just missed analysts expectations of $5.516 billion. Looking ahead, Broadcom expects  full fiscal year 2019 revenue of $22.5 billion, maintaining its prior forecast.

The KeyBanc analysts increased their price target to $58 from $45. KeyBanc analysts expect memory trends to improve through 2020 excluding a recession, as indicated by Twigg wrote in a note.Twigg also suggested that DRAM, which accounts for roughly 70% of the company’s revenue, is likely to be a stronger market over the long-term compared to NAND, due to less competition, high barriers to entry, and supply constraints from scaling limitations. Twigg also expects both NAND and DRAM inventories to drop during the second half of this year, with NAND pricing likely to steadily increase through that period and DRAM pricing likely to stabilize by the end of the year.    

Chip manufacturer Microchip Technology (Nasdaq: MCHP) announced earnings results for its fiscal first quarter after the closing bell on August 6.Revenue has increased by an average of 29% per year over the last three years and the first quarter results were up by 9% over the previous year. Microchip’s management efficiency ratings are really strong with a return on equity of 38.2% and a profit margin of 31.5%. From a valuation standpoint, the company is trading at a trailing P/E ratio of 62.3, but the forward P/E is only 12.25.

Cirrus Logic beat analysts’ expectations on its fiscal first-quarter earnings and revenue, sending its shares soaring on Thursday. The semiconductor company reported adjusted earnings of 35 cents a share, which surpassed analysts’ estimate of 15 cents. Although revenue declined from $254.4 million a year ago to $238.3 million in the quarter, it was still higher than the Street's forecast of $221.9 million.The year-over-year drop in revenue has been attributed by Cirrus to mainly lower sales of portable products shipping in smartphones, along with digital headsets and adapters, which were offset to some extent by increased amplifier sales at Android customers. For the second quarter, Cirrus has projected revenue to range between $300 million and $340 million.

Micron Technology shares got a rating upgrade by Morgan Stanley, on hopes for near-term boost from rising DRAM prices. Morgan Stanley analysts raised their rating on the computer memory/data storage company’s stock to equal weight from underweight.If cloud and smartphone inventory builds reaccelerate, Micron could experience tailwinds in 2020 and its stock could touch new highs – according to Moore.

Micron Technology shares climbed on Monday, following a rating upgrade by Goldman Sachs. Goldman Sachs analyst  Mark Delaney  raised his rating on the computer memory and  data storage company’s stock to buy from neutral.Delaney  also increased price target on Micron shares to $56 from $40. The analyst indicated that he is now more optimistic about global memory stocks as he believes that the companies’ excess inventory will  be depleted faster than anticipated. Micron shares gained more than +3% in premarket trading on Monday, after the upgrade from Goldman Sachs.

Semiconductor manufacturer ON Semiconductor (Nasdaq: ON) fell during the month of May but seems to have reversed its trend in the last month and a half.The company has seen earnings grow by 73% per year over the last three years, but analysts expect the company to see earnings contract by 9% in 2019.

Several media reports suggest that cybersecurity firm Symantec Corp. could be bought by semiconductor company Broadcom. Citing sources familiar with the matter, a Bloomberg report indicates that the two companies are in advanced talks.It is the world’s largest producer of cybersecurity software. However,  Symantec  had its share of challenges in the past year, including the abrupt departure of its chief executive officer and a financial investigation that led to restated earnings. On Wednesday, Symantec shares soared more than +13%, while Broadcom’s fell more than -3%.

Evercore analysts expect another leg down in the memory chip market in the fourth quarter of 2019 and now see the industry’s recovery pushed to the second half of next year. As a result, they said they are becoming more selective in the chip sector and slashed price targets on some stocks.

Advanced Micro Devices, Inc. shares jumped nearly +6% Thursday, following a rating upgrade by Morgan Stanley.  Analysts at Morgan Stanley raised their rating on the semiconductor company to equal weight from underweight.The analysts feel there are enough positive near-term tailwinds for AMD. Morgan Stanley analyst Joseph Moore mentioned cloud gaming as a key strength for AMD.

A cautious stance on Advanced Micro Devices, Inc. AMD 5.69% over the past year was "obviously" the wrong call but the "table is set well" for 2020, according to Morgan Stanley.

According to the terms of the deal, Infineon would pay Cypress $23.85 per share in cash, representing a 46% premium to Cypress’ share price over the last month. The move is in line with Infineon’s target of attaining cost synergies of 180 million euros per year by 2022 and revenue synergies of more than 1.5 billion euros in the long-term.However, the company is confident that cost and revenue synergies mean that the transaction is meaningful. On the other hand, Cypress’ shares rose 27% in pre-market trade. It has also been confirmed that Infineon has paid 4.5 times revenue for Cypress, arguing that the investment has been consistent with its strategy of revenue multiples incomparable within deals in the semiconductor industry. It is expected that the combined entity will facilitate a stronger bond between the real and the digital world.

Shares of AMD surged as high as 12% following after the announcement about upcoming chips that could take away market share from rival Intel. Several new third-generation Ryzen PC chips will be released in July that will use the company’s “Zen 2” core technology.Apparently, a new Radeon card performed better than a card from rival Nvidia. In the third quarter, new third-generation Epyc chips for servers that use the “Zen 2” core will follow. Analysts have changed the rating to outperform for AMD and believe that the company has significantly improved in 2019 and will further improve the next year.