SWKS, INTC and IoT

Investment Analysis Clubs Saul’s Investing Discussions
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Intel reported a miss tonight…

late Wednesday, No. 1 chipmaker Intel (INTC) reported a 6-cent earnings beat and Q2 sales that were slightly shy of Wall Street expectations, as PC and Internet of Things sales slipped from Q1, slightly offset by double-digit growth in its Altera unit.

Intel CEO Brian Krzanich said the chipmaker is on track as it shifts its focus toward data center, IoT and programmable chips…

“We’re gaining momentum heading into the second half,” Krzanich said in the company’s earnings release. "While we remain cautious on the PC market, we’re forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions."
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But Intel’s key IoT unit saw sales fall 12% sequentially, though they rose 2% from the year-earlier quarter
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Shares are up 4% for the year on speculation that Apple (AAPL) might tap Intel to source some of its iPhone 7 modems, partially replacing incumbent Qualcomm (QCOM).

This won’t help SWKS and Apple profits/sales seen falling to as the cheaper SE edition eats away at higher priced models - though this could be neutral for SWKS.

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In related news…

Qualcomm (QCOM) stock rocketed late Wednesday after the Apple (AAPL) chip supplier reported fiscal Q3 sales and earnings that crushed analysts’ views, with the company citing “meaningful progress with licensees in China.” Qualcomm current-quarter guidance also beat Wall Street views…

CEO Steve Mollenkopf also noted growth in Qualcomm’s chip set business with strong new product ramps, particularly with “fast-growing OEMs in China.” He expressed confidence in Qualcomm’s investments in 5G, the next advance in broadband beyond the current cutting-edge 4G, which he said should drive long-term earnings growth

5G growth should also help SWKS.

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This week, I have made new investments in two chip companies: SWKS at $70.45, and a new one for me, IDTI at $21.81.

I don’t pretend to understand either of them but they came through the Strelna Screening System so heigh-ho and here we go.

(More cautiously, I am in GM after the results, for the yield and maybe something more; proxy for bonds/cash… TINA, as someone said. Totally irrelevant here.)

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