Latest news with #Semiconductor
Yahoo
a day ago
- Business
- Yahoo
Global Testing (SGX:AYN) Might Have The Makings Of A Multi-Bagger
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, we've noticed some promising trends at Global Testing (SGX:AYN) so let's look a bit deeper. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Global Testing, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.097 = US$4.7m ÷ (US$59m - US$10m) (Based on the trailing twelve months to December 2024). So, Global Testing has an ROCE of 9.7%. In absolute terms, that's a low return but it's around the Semiconductor industry average of 9.0%. See our latest analysis for Global Testing Historical performance is a great place to start when researching a stock so above you can see the gauge for Global Testing's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Global Testing. Global Testing has recently broken into profitability so their prior investments seem to be paying off. The company was generating losses five years ago, but now it's earning 9.7% which is a sight for sore eyes. In addition to that, Global Testing is employing 66% more capital than previously which is expected of a company that's trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance. In summary, it's great to see that Global Testing has managed to break into profitability and is continuing to reinvest in its business. And a remarkable 400% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue. If you'd like to know about the risks facing Global Testing, we've discovered 1 warning sign that you should be aware of. While Global Testing isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Business Standard
06-06-2025
- Business
- Business Standard
Bharat Electronics signs MoU with Tata Electronics
For development of indigenous electronics and semiconductor solutions Bharat Electronics (BEL) announced the signing of a Memorandum of Understanding (MoU) with Tata Electronics towards the development of indigenous electronics and semiconductor solutions in line with the Government of India's vision for self-reliance. This MoU marks a significant step forward for BEL and Tata Electronics in jointly exploring end-to-end solutions to meet domestic requirements. As part of the agreement, BEL and Tata Electronics will explore the opportunities to collaborate in the areas of Semiconductor Fabrication (Fab), Outsourced Semiconductor Assembly and Test (OSAT), and design services solutions offered by Tata Electronics to meet the current and future requirements of BEL that include Microcontrollers (MCUs), Systems-on-Chip (SoCs), Monolithic Microwave Integrated Circuits (MMICs), and other Processors. Both companies will also endeavour to develop optimum manufacturing solutions for BEL's products through knowledge sharing, best practices and other resources.
Yahoo
04-06-2025
- Business
- Yahoo
Wolfspeed (NYSE:WOLF) Reports Q3 Sales Decline To US$185M
Wolfspeed recently appointed David Emerson as Chief Operating Officer, focusing on enhancing operational efficiency in their silicon carbide manufacturing. The company also welcomed two new board members, Mark Jensen and Paul V. Walsh, Jr., known for their expertise in financial governance and the semiconductor industry. These leadership changes occur amid challenging financial results, with Q3 sales declining to $185.4 million and an increased net loss of $285.5 million. These factors, against a backdrop of a market gaining 2%, could have amplified Wolfspeed's 17% share price decline over the past week. Every company has risks, and we've spotted 4 weaknesses for Wolfspeed (of which 1 is a bit unpleasant!) you should know about. AI is about to change healthcare. These 23 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent leadership changes at Wolfspeed may influence its ongoing efforts to improve operational efficiency and financial performance. With David Emerson stepping in as Chief Operating Officer, the focus is expected to sharpen on enhancing silicon carbide manufacturing operations. Combined with the new board members' expertise, these changes could support Wolfspeed's plan to close inefficient facilities and leverage U.S. government support, potentially driving improvements in operating margins and liquidity. However, given the company's recent financial challenges, the impact of these changes on revenues and earnings remains uncertain. Over the past year, Wolfspeed's total shareholder return was very large as it dropped 95.49%. This severe decline far exceeded the company's short-term market loss of 17% following the latest financial reports. Over the same year, Wolfspeed underperformed the broader U.S. market, which recorded an 11.9% gain, and the U.S. Semiconductor industry, which saw an 11.6% increase. This stark comparison highlights the company's struggles despite having the potential for revenue growth in sectors like EVs and renewable energy. Looking ahead, the share price currently stands at US$3.47, significantly undervalued compared to the consensus analyst price target of US$5.7—a 39.1% potential increase. Nonetheless, achieving this target could be challenging given the company's forecasted continued unprofitability over the next three years. The ability to leverage advancements in 200-millimeter technology and secure CHIPS Act funding will be crucial for improving revenue and earnings forecasts. Gain insights into Wolfspeed's future direction by reviewing our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:WOLF. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
Broadcom (NasdaqGS:AVGO) Unveils World's First 102.4 Terabits/sec Ethernet Switch
Broadcom has officially begun shipping the Tomahawk 6 switch series, marking a significant milestone in AI-optimized network infrastructure. This development aligns with the company's recent impressive quarterly performance, where it recorded a 34% price increase. This upsurge was further bolstered by its robust Q1 earnings report, showing substantial revenue and net income growth. The introduction of new AI-powered features in CloudHealth and advancements in co-packaged optics also contributed to Broadcom's positive momentum. While the market saw a general upward trend, Broadcom's focused innovations in AI and network technologies likely amplified its stronger position. We've identified 3 possible red flags with Broadcom and understanding the impact should be part of your investment process. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The recent launch of Broadcom's Tomahawk 6 switch series represents a meaningful development within its AI-optimized network solutions. These advancements may reinforce the company's strategic focus on AI technology, potentially propelling future revenue streams and profit margins. By intensifying efforts in AI R&D and forming significant hyperscale partnerships, Broadcom aims to enhance its technological leadership, setting the stage for improved long-term financial performance. Over the past five years, Broadcom's shares have experienced a very large total return, indicating strong value generation for shareholders. Comparatively, in the more recent one-year period, Broadcom's stock outperformed the US Semiconductor industry, which saw an 11.6% increase. This suggests the company's strong positioning amidst broader industry dynamics. Looking ahead, the integration of AI-optimized technologies is projected to affect revenue and earnings forecasts positively. The current revenue of 54.53 billion and earnings of 10.40 billion are expected to experience significant growth as new AI partnerships mature. Despite these prospects, analysts' consensus price target of US$238.54 reveals potential upside compared to the current share price of US$200.09. Yet, investors must weigh this alongside potential risks such as R&D expenses, customer concentration, and geopolitical factors that could impact projections. As shares are trading at a discount to the consensus target, this may present a valuation opportunity, contingent on how Broadcom navigates its strategic initiatives and market challenges. Understand Broadcom's track record by examining our performance history report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AVGO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
01-06-2025
- Business
- Yahoo
Forget Warren Buffett's Favorite Index. This Artificial Intelligence ETF Could Potentially Turn Just $500 Per Month Into $156,000 Over 10 Years.
Warren Buffett has long touted the virtues of average investors investing in an S&P 500 index fund. However, this sector-specific ETF has crushed the S&P over the past decade. Given its diverse exposure to key AI and automation trends, it could very well repeat in the decade ahead. 10 stocks we like better than iShares Trust - iShares Semiconductor ETF › Warren Buffett has long touted the virtues of investing in a low-cost index fund that tracks the S&P 500 index. The thinking behind this recommendation is that an S&P 500 index fund will track the broader market, delivering low-risk, average returns with low costs. But there are also sector-specific exchange-traded funds (ETFs) that offer exposure to specific sectors. And while Buffett is more modest in picking specific sectors to win, it seems likely that the technology sector will, over the long run, outperform. After all, technology is making its way into more and more of our daily lives, through smartphones, cloud computing, and now artificial intelligence. The sector, with its high technical and capital barriers, has also generally produced high margins in recent years. Within the technology sector, one subsector has outperformed all others. Over the past 10 years, the overall S&P 500 has performed quite well, with an annualized return of 10.7%. That has been a really great decade, outperforming the market's long-term average. A lot of those returns have been powered by technology companies. The QQQ Trust, an ETF that aims to mirror the Nasdaq 100 index, which in itself is a proxy for the technology sector, has vastly outperformed the broader market, with a 16.7% annualized return over the past decade. But within technology, which subsector has performed even better? Semiconductors. Over the past 10 years, the semiconductor sector, as defined in the iShares Semiconductor ETF (NASDAQ: SOXX), has compounded at a stunning 20% annualized rate. That level of compounding tops even the 19.9% rate at which Warren Buffett's conglomerate, Berkshire Hathaway, has compounded -- although Berkshire has impressively grown at that average rate over a whopping 60 years! What kind of difference does a 20% rate make versus a 10.7% rate? At these levels, a mere $500 monthly contribution to the iShares Semiconductor ETF over 10 years would increase to an astounding $155,906 -- 2.6 times the amount of money contributed. That compares with just $98,941 if invested in the S&P 500 for a similar length of time. Semiconductors have a reputation for being wildly cyclical, and that is somewhat true. However, more and more chips are going into our PCs, phones, household appliances, and cars every year. In conjunction with that, game-changing technologies, such as the internet, cloud computing, and, more recently, artificial intelligence, have created entirely new industries and pools of demand. So, why so cyclical? Because semiconductors are hardware and, thus, prone to the "bullwhip" of booms and busts. The bullwhip effect happens when customers rush to buy in good times, only to freeze up and burn down their inventories when times get tough. But taking a long-term look over 10 years, the overall trend is clearly upward and to the right, with a higher rate of growth than gross domestic product (GDP), given the increasing density of semiconductors in all products and services over time. The sector also has a reputation for being fiercely competitive. While that's somewhat true, a wave of consolidation among the big players in the industry over the past 20 years has often reduced competition to a few players in each industry subsegment. That has helped the sector increase margins relative to the past, leading to outsized profit growth. Here are the iShares Semiconductor ETF's top 10 holdings: Company % of iShares Semiconductor ETF Assets Broadcom 8.7% Nvidia 7.9% Texas Instruments 7.4% Advanced Micro Devices 7.1% Qualcomm 6.8% KLA Corporation 4.5% Applied Materials 4.3% Monolithic Power Systems 4.3% Lam Research 4.2% NXP Semiconductors 3.9% Some would say it would be a stretch for the iShares Semiconductor ETF to repeat last decade's performance in the upcoming decade. After all, 10 years ago, the cloud computing revolution was just gaining critical mass, and the artificial intelligence revolution, ushered in with the release of ChatGPT in 2022, hadn't happened yet. However, it appears to be a pretty good bet that the iShares Semiconductor ETF will continue to outperform over the long term. As long as technological innovation continues apace, humans will continue to use technology to improve their lives, save time and money, and boost connectivity. That means more semiconductors. And as semiconductor-led innovation also creates entirely new markets (like AI), the semiconductor sector should continue to outgrow GDP. Given the massive amount of capital and technological resources required to compete, I would also expect relatively stable competition and the preservation of margins. No doubt, there will be heated competition for AI supremacy in the years ahead. However, the beauty of owning an ETF is that it will capture the winners and lower its allocation to the losers over time. Warren Buffett's late longtime partner, Charlie Munger, used to say that over the long term, a stock's return tends to mirror its return on invested capital (ROIC). Given the generally high ROIC of leading chip designers, manufacturers, and equipment companies today, it seems likely that the next decade will also be a positive one for semiconductor stocks, just as the last one was. Before you buy stock in iShares Trust - iShares Semiconductor ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Trust - iShares Semiconductor ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein has positions in Applied Materials, Berkshire Hathaway, Broadcom, KLA, Lam Research, and Texas Instruments. The Motley Fool has positions in and recommends Advanced Micro Devices, Applied Materials, Berkshire Hathaway, Lam Research, Nvidia, Qualcomm, Texas Instruments, and iShares Trust - iShares Semiconductor ETF. The Motley Fool recommends Broadcom, Monolithic Power Systems, and NXP Semiconductors. The Motley Fool has a disclosure policy. Forget Warren Buffett's Favorite Index. This Artificial Intelligence ETF Could Potentially Turn Just $500 Per Month Into $156,000 Over 10 Years. was originally published by The Motley Fool
