Technology

BofA Says These 4 Companies Could Benefit From The Next Apple Product Cycle

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Apple Inc. (NASDAQ:AAPL) recently released a list of its top suppliers for materials, manufacturing and assembly of its products which showed that China remains a key manufacturing base and India is ramping up production as well. Why It Matters: BofA Securities released a research note based on the list of Apple’s suppliers which named companies that could potentially benefit from an Apple product cycle. BofA named electronics manufacturers Jabil, Inc. (NYSE:JBL) and Flex, Ltd. (NASDAQ:FLEX) as potential beneficiaries and noted Apple accounted for 17% of Jabil’s revenue in 2023. Amphenol Corporation (NYSE:APH) provides connectors and antennas for the iPhone, and BofA estimates Apple accounts for single-digit revenue at Amphenol. BofA also noted glass maker Corning Incorporated (NYSE:GLW) remained on Apple’s 2023 supplier list. Related News: Apple And Tesla ‘Only Two Companies Able To Thread The Needle In Terms Of China-US’, Says Top Analyst After Tim Cook And Elon Musk’s Recent China Visits The firm maintained its Buy rating on […]

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Apple’s Fear Factor Is a Draw — WSJ

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By Dan Gallagher Apples largest business is struggling, while the company is also losing ground in China and seems to have completely missed Big Techs AI party. That might make now a good time to buy the stock. Apples share price jumped more than 3% Monday morning after Bernstein analyst Toni Sacconaghi upgraded the stock to a buy rating. A Heard on the Street column also published Monday morning noted that the stock has been a weak performer this yearespecially relative to other big tech shares that have been lifted by the markets enthusiasm for generative artificial intelligence. Worries about the latest iPhone cycle, China, regulatory pressure in the U.S. and Europe and the companys unclear plans for its own AI play have all combined to push Apples multiple to around 25 times forward earningsin line with its five-year average, according to FactSet data. Buy the fear, was Sacconaghis advice

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AI Data Centers Drive Electricity Demand: Goldman Sachs Picks 16 Stocks To Play The Trend

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Escalating electricity needs from running AI data centers will create downstream investment benefits in the utilities, renewable energy generation, and industrial sectors, according to Goldman Sachs. In a recently published study, equity analyst Carly Davenport has listed a basket of stocks positioned to benefit from the potential massive surge in U.S. power demand. The investment bank forecasts that data center power demand will grow at 15% compound annual growth rate from 2023-2030. This growth trajectory is expected to elevate data centers’ share of total US power demand to 8% by 2030, up from the current level of approximately 3%. The “U.S. power demand (is) likely to experience growth not seen in a generation. Not since the start of the century has US electricity demand grown 2.4% over an eight-year period, with US annual power generation over the last 20 years averaging less than 0.5% growth,” Goldman Sachs highlights. Analysts estimate

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CFRA Maintains Hold Opinion On Shares Of Intel Corporation

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target to $35 from $45, on P/E of 16x our ’25 EPS view, below peers to reflect lackluster AI prospects. We cut our ’24 EPS to $1.07 from $1.45 and ’25 to $2.20 from $2.40. INTC posts Q1 2024 EPS of $0.18 vs. -$0.04, beating the $0.14 consensus. Revenue rose 9%, slightly below consensus, as 31% growth in Client Computing and 5% boost in Data Center and AI was partly offset by declines across all other segments (Foundry -10%). Q2 guide was a disappointment in terms of both revenue ($13B vs. $13.6B consensus) and gross margin (43.5% vs. 45.4% view), but cites a stronger ramp in the 2H. We find INTC’s inability to gain momentum disturbing despite strong cloud customer spend, while its

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Alphabet Showed Perfection, and That Could Drive the Stock’s Best Day in 9 Years

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By Emily Bary Google parent puts ‘doomsday AI search share-loss fears’ to bed with latest earnings report Alphabet Inc.’s stock could see its second-best single-day performance in history on Friday, following an earnings report that drew effusive praise from analysts. Simply put, the company was “perfect,” in the view of Bernstein analyst Mark Shmulik. The Google parent company faced an interesting setup headed into the report. On one hand, its shares were near all-time highs. But at the same time, Alphabet (GOOG) (GOOGL) has spent the past year and a half drawing investor doubts over factors like its artificial-intelligence positioning and the future of its core search business in a world where AI queries come to dominate, wrote Shmulik, who has a market-perform rating on the stock. See also: Alphabet’s stock surges on first-ever cash dividend, $70 billion stock buyback, strong results He noted that the company’s results were buoyed

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Intel (INTC.US) Q1 2024 Earnings Conference

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The following is a summary of the Intel Corporation (INTC) Q1 2024 Earnings Call Transcript: Financial Performance: Intel reported a Q1 revenue of $12.7 billion, with a YoY growth of 9%. The quarter witnessed a gross margin of 45.1%, surpassing the guidance by 60 basis points. The company’s EPS stood at $0.18 for the quarter, exceeding the guidance by $0.05. Operating cash flow was recorded as negative $1.2 billion. The company anticipates stronger sequential revenue growth throughout the year and into 2025. Intel predicts peaking of costs in 2024, with revenue improvements in Q3 and Q4 that will help lift gross margins in the second half. The company projects better gross margin rates in 2025 than in 2024, targeting mid-50s margins midway between now and 2030, with an ultimate aim of 60%. Business Progress: Intel announced Microsoft as its fifth Intel 18A customer, with another meaningful customer signed on. Intel

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Microsoft (MSFT) Q3 2024 Earnings Call Transcript

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The following is a summary of the Microsoft Corporation (MSFT) Q3 2024 Earnings Call Transcript: Financial Performance: Microsoft reported $61.9 billion in revenue for Q3, a 17% increase from previous year’s period. They posted strong earnings per share of $2.94, a 20% increase year-over-year. Revenue gains were largely driven by Azure commitments, resulting in commercial bookings increasing 29% and 31% in constant currency. Microsoft’s cloud business recorded a revenue of $35.1 billion, growing at 23%, with gross margin percentage decreasing slightly to 72%. Operating expenses grew by 10%, with operating income increasing by 23%, and operating margins rising approximately 2 points year-over-year to 45%. Business Progress: Over 65% of Fortune 500 companies are now using Azure’s OpenAI service, indicating a growing business user base. Microsoft’s Copilot system is gaining traction, with plans to create Copilot-like scenarios in every business system to enhance enterprise-wide efficiency. Diablo IV’s integration into Game Pass

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Intel’s Q2 Guidance ‘Left a Lot to Be Desired,’ Wedbush Says

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Intel’s (INTC) Q2 financial outlook “left a lot to be desired,” with revenue seen only rising modestly and margins projected to fall meaningfully on a sequential basis, Wedbush Securities said Friday. Late Thursday, the technology giant said it expects Q2 non-GAAP earnings of $0.10 per share on revenue of $12.5 billion to $13.5 billion. Analysts polled by Capital IQ expect EPS of $0.11 on revenue of $13.22 billion. Intel’s outlook contrasts with its previous estimate for sequential improvement through the course of the year, Wedbush analyst Matt Bryson said in a note. “In addition, we believe some incremental color that Intel provided on the call was less compelling than might have been hoped for.” The brokerage lowered its price target on the Intel stock to $32.50 from $40.00 while keeping its neutral rating. The company’s shares were down more than 8% in recent trading.

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IBM Delivers on Two Key Metrics in ‘Solid’ Q1 Despite Revenue Miss, RBC Says

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International Business Machines (IBM) delivered on free cash flow and Red Hat sales in Q1 for a “solid” start to the year despite trailing estimates on total revenue, RBC Capital Markets said Thursday in a report. “The highlight from our perspective was the performance of our two focal metrics” with free cash flow of $1.9 billion topping RBC’s $1.7 billion estimate and Red Hat revenue in line with expectations, according to the report. IBM on Wednesday reported Q1 adjusted earnings rose to $1.68 a share from $1.36 a year earlier, topping the Capital IQ consensus of $1.59. Revenue rose to $14.46 billion, trailing the consensus of $14.54 billion. “The biggest negative surprise was around the consulting space where IBM’s resiliency relative to the broader market over the past year showed some signs of softening,” RBC said. On Wednesday, IBM also agreed to buy multi-cloud infrastructure automation company HashiCorp (HCP) for

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Microsoft Q3 Shines Light On ‘AI Innovation Cycle’: Analysts See ‘Plenty Of Runway For Growth’

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Technology giant Microsoft Corporation (NASDAQ:MSFT) reported third-quarter financial results that saw revenue and earnings per share beat estimates from analysts. Analysts are praising the company’s growth of artificial intelligence platforms. The MSFT Analysts: Oppenheimer analyst Timothy Horan has an Outperform rating and price target of $450. Raymond James analyst Andrew Marok has an Outperform rating and raises the price target from $450 to $480. Goldman Sachs analyst Kash Rangan has a Buy rating and raises the price target from $450 to $515. Morgan Stanley analyst Keith Weiss has an Overweight rating and price target of $520. Wedbush analyst Daniel Ives has an Outperform rating and price target of $500. Bank of America analyst Brad Sills has a Buy rating and price target of $480. JPMorgan analyst Mark Murphy has an Overweight rating and raises the price target from $440 to $470. BMO Capital analyst Keith Bachman has an Outperform rating and price

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Microsoft Delivers Another Strong Quarter With Impressive Results, Wedbush Says

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Microsoft (MSFT) latest Q3 results showcased yet another strong quarter with impressive outcomes across the board, Wedbush said in a report Friday. Microsoft Azure’s growth soared at 31%, surpassing both the Wall Street’s estimate of 29% and the company’s own guidance of 28%, driven by strong demand for their updated tech stack. “Copilot conversions continue exploding with partners/customers lining up for further Copilot deployments to increase efficiencies and profitable growth with more use cases seen across the product portfolio as the AI Revolution heats up,” Wedbush said. In Q3, Microsoft’s total revenues reached $61.86 billion, surpassing estimates, driven by successful AI integration, the firm said. Looking ahead, Microsoft anticipates solid revenue growth for Q4, “as more customers see increased use cases with MSFT’s AI technology stack to further expand profitable growth” while generating greater efficiencies across operations despite increasing investments, Wedbush said. Microsoft also issued robust guidance for 2025, anticipating

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CFRA Maintains Buy Recommendation On Shares Of Kla Corporation

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our price target by $23 to $778, 25x our CY 2025 EPS view ($31.13), near peers and above KLAC’s three-year average (~18x) on growing confidence that the semi industry is exiting a downcycle, driven by AI. KLAC posted Mar-Q sales of $2.36B (-3% Y/Y) and EPS of $5.26 (-4%), above consensus, including a -$0.40 impact to EPS from its March decision to exit the flat panel business. We raise our FY 2024 (Jun.) EPS view by $0.06 to $23.36, lift FY 2025’s by $1.27 to $28.56, and raise FY 2026’s by $0.70 to $33.40. We expect CY 2024 growth to be led by foundry/logic activity (64% of Mar-Q process control sales) as customers move at a faster pace toward gate-all-around and 2-nm, while advanced DRAM

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