Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers 650V SiC MOSFET, a switching solutions for solar inverters, motor drives, industrial power supplies, and energy storage systems. Further, it provides 750V SiC MOSFET for electric vehicle systems such as the on-board charge; transient voltage suppressors; silicon carbide product for industrial applications, such as solar inverters, UPS, and battery management systems. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

Alpha and Omega Semiconductor Limited

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR S&P Semiconductor ETF (Symbol: XSD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $282.38 per unit.
With XSD trading at a recent price near $201.74 per unit, that means that analysts see 39.97% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XSD's underlying holdings with notable upside to their analyst target prices are Semtech Corp. (Symbol: SMTC), Alpha & Omega Semiconductor Ltd. (Symbol: AOSL), and Impinj Inc (Symbol: PI). Although SMTC has traded at a recent price of $34.37/share, the average analyst target is 63.17% higher at $56.08/share. Similarly, AOSL has 57.86% upside from the recent share price of $20.06 if the average analyst target price of $31.67/share is reached, and analysts on average are expecting PI to reach a target price of $149.50/share, which is 53.05% above the recent price of $97.68. Below is a twelve month price history chart comparing the stock performance of SMTC, AOSL, and PI:
Combined, SMTC, AOSL, and PI represent 7.07% of the SPDR S&P Semiconductor ETF. Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
SPDR S&P Semiconductor ETF
XSD
$201.74
$282.38
39.97%
Semtech Corp.
SMTC
$34.37
$56.08
63.17%
Alpha & Omega Semiconductor Ltd.
AOSL
$20.06
$31.67
57.86%
Impinj Inc
PI
$97.68
$149.50
53.05%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Dividend Yield
ESHY Videos
IMAX Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Implied Analyst 12-Month Target For XSD

In trading on Thursday, the Xtrackers MSCI Kokusai Equity ETF (KOKU) is outperforming other ETFs, up about 9.6% on the day. Components of that ETF showing particular strength include shares of Dexcom (DXCM), up about 5.7% and shares of Newmont (NEM), up about 4.3% on the day.
And underperforming other ETFs today is the SPDR S&P Semiconductor ETF (XSD), off about 7.1% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of Alpha and Omega Semiconductor (AOSL), lower by about 12.2%, and shares of Diodes (DIOD), lower by about 10.8% on the day.
VIDEO: Thursday's ETF Movers: KOKU, XSD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday's ETF Movers: KOKU, XSD

The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
ALPHA AND OMEGA SEMICONDUCTOR LTD (AOSL) is a small-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of a broad portfolio of power semiconductors. Its portfolio of products targets high-volume applications, including personal computers, graphic cards, game consoles, flat panel televisions (TV), home appliances, power tools, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. Its product portfolio consists of two categories: power discrete and power ICs that serve the large and diverse analog market for power semiconductors. Its power discrete products consist of low, medium and high voltage power MOSFETs. Its power ICs deliver power and control and regulate the power management variables, such as the flow of current and level of voltage. Its portfolio of power semiconductors includes approximately 2,700 products. It conducts its operations in the United States of America, Hong Kong, China, and South Korea.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ALPHA AND OMEGA SEMICONDUCTOR LTD
AOSL Guru Analysis
AOSL Fundamental Analysis
FARO TECHNOLOGIES INC (FARO) is a small-cap value stock in the Scientific & Technical Instr. industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FARO Technologies, Inc. is a global technology company. The Company designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging, and realization solutions for the manufacturing, architecture, engineering and construction (AEC), operations and maintenance (O&M) and public safety analytics markets. The Company enables its customers to capture, measure, manipulate, interact with and share four-dimensional (4D), 3D and two-dimensional (2D) data from the physical world in a virtual environment and then translate this information back into the physical domain. The Company's FARO suite of 3D products and software solutions are used for inspection of components and assemblies, rapid prototyping, reverse engineering and various others. Its products include FaroArm Portfolio, FARO Laser Tracker, FARO Laser Scanning Portfolio and FARO Mobile Laser Portfolio. Its software includes FARO Sphere XG, CAM2, BuildIT Metrology and BuildIT Projector.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FARO TECHNOLOGIES INC
FARO Guru Analysis
FARO Fundamental Analysis
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Kenneth Fisher Strategy Daily Upgrade Report - 2/22/2025

In today's video, I discuss recent updates affecting Nvidia (NASDAQ: NVDA) and other semiconductor stocks. To learn more, check out the short video, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of Dec. 16, 2024. The video was published on Dec. 17, 2024.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $342,278!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $47,543!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $496,731!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
See 3 “Double Down” stocks »
*Stock Advisor returns as of December 16, 2024
Jose Najarro has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Nvidia Stock Investors Should Ignore Recent Overheating Rumors

Alpha and Omega Semiconductor AOSL shares have surged 87.6% on a year-to-date (YTD) basis, outperforming the Zacks Electronics – Semiconductors industry and the Zacks Computer & Technology sector’s return of 38.4% and 34.6%, respectively.
Over the same time frame, Alpha and Omega Semiconductor had also outperformed its industry peers, including Nova Ltd NVMI, Broadcom AVGO and Navitas Semiconductor NVTS. On a YTD basis, shares of NVMI and AVGO gained 39.8% and 64.2%, respectively, while NVTS plunged 49.4%.
The exceptional performance of Alpha and Omega Semiconductor demonstrates its dedication to transforming from a supplier of components into a preeminent provider of comprehensive solutions by utilizing its advantages in intelligent integrated circuits and high-performance silicon packaging.
Alpha and Omega Semiconductor Limited Price and Consensus
Alpha and Omega Semiconductor Limited price-consensus-chart | Alpha and Omega Semiconductor Limited Quote
Recently, Alpha and Omega Semiconductor has taken a leap forward in artificial intelligence (AI) and graphics processing technology with the launch of the AOZ73004CQI, the world’s first 4-Phase PWM controller designed for NVIDIA’s Blackwell graphic processing units (GPUs). This innovation positions AOSL as a critical player in advancing GPU efficiency and performance, pivotal in AI server and high-performance computing applications.
The AOZ73004CQI is a game-changer, compliant with the latest Open Voltage Regulator standards, ensuring seamless integration with modern GPU architectures. Its ability to dynamically control the output voltage and minimize power ripple enhances the energy efficiency and stability of next-generation GPUs. By leveraging Alpha and Omega Semiconductor’s proprietary DrMOS technology, the controller enables scalable power solutions with up to 12 power stages, catering to demanding AI workloads and gaming environments.
AOSL’s strategic focus on innovation aligns with the booming AI and computing sectors, which increasingly demand energy-efficient and high-performance components. The immediate availability of the AOZ73004CQI in production quantities underscores Alpha and Omega Semiconductor’s readiness to meet this growing demand. While priced competitively at $1.20 per unit, the controller’s advanced capabilities make it a compelling choice for data center and GPU manufacturers, strengthening AOSL’s market position in the semiconductor space.
Strengthening Portfolio to Aid AOSL’s Long-Term Prospects
AOSL is well-positioned to succeed in the markets it serves due to its wide range of product offerings and elite clientele.
AOSL's new EZBuck Regulator application marks a notable action in October. The AOZ23567QI Constant On-Time Buck Converter is a highly integrated, small and high-power-density solution that supports VCCPRIM_VNNAON rails in the Intel Arrow Lake platform.
The AOZ23567QI offers a fixed nominal voltage of 0.77V across system states S0 to S5, and it was designed to satisfy the requirements of the Intel Arrow Lake S Line platforms.
AOSL unveiled its ideal diode protection switches, the AOZ1390DI-01 and AOZ1390DI-02, in September. These state-of-the-art devices can handle up to 100W and are made for multi-port Type-C PD 3.0 current-sinking applications. For high-performance laptops, desktop computers, docking stations, monitors and other Type-C port applications, they are the ideal choice.
The new, incredibly durable LFPAK 5x6 power MOSFET package from AOSL was released in August. It comes with a variety of voltage options, including 40V, 60V and 100V. This package is made to withstand challenging conditions while preserving the best possible MOSFET performance. The new gadgets are appropriate for a number of uses where high dependability is crucial, such as solar energy, server power, industrial and telecommunications.
Risks Persist for AOSL
Geopolitical problems and persistent macroeconomic difficulties often present risks for the stock. The data center industry's fierce competition is a big drawback.
Softness in product demand is predicted to have a negative short-term impact on AOSL's prospects as businesses put off big IT spending plans as a result of persistent macroeconomic and geopolitical problems.
Additionally, seasonality trends may hinder the second-quarter sequential revenue growth of all operational segments.
For the second quarter of fiscal 2025, AOSL projects total revenues to be $170 million (+/- $10 million). The Zacks Consensus Estimate is pegged at $170.05 million, indicating a year-over-year rise of 2.9%. The consensus mark for earnings is pegged at 8 cents per share, revised downward by 60% over the past 60 days, indicating a fall of 66.7% year over year.
What Investors Should Do With AOSL Stock
The year-to-date surge and creative product introductions of AOSL demonstrate its tenacity and prospects for sustained expansion. However, a cautious approach is necessary due to immediate challenges, such as increased competition, demand softness and macroeconomic uncertainties. Additionally, the stock's stretched valuation is indicated by its Zacks Value Style Score of D.
For investors, AOSL’s strong fundamentals and strategic evolution make it a compelling hold. While the stock may not be an immediate buy at current levels, its robust portfolio and focus on innovation position it for growth as market conditions stabilize.
AOSL currently carries a Zacks Rank #3 (Hold), implying that existing investors should keep holding the stock while new buyers should wait for a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2025
Want to be tipped off early to our 10 top picks for the entirety of 2025?
History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Nova Ltd. (NVMI) : Free Stock Analysis Report
Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report
Navitas Semiconductor Corporation (NVTS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can AOSL's New AOZ73004CQI Controller Enhance the Stock's Momentum?

In trading on Wednesday, the iShares MSCI China ETF is outperforming other ETFs, up about 2.5% on the day. Components of that ETF showing particular strength include shares of Iqiyi, up about 9.3% and shares of Qifu Technology, up about 5.3% on the day.
And underperforming other ETFs today is the Invesco Semiconductors ETF, off about 2.7% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Alpha and Omega Semiconductor, lower by about 10.4%, and shares of Astera Labs, lower by about 6.9% on the day.
VIDEO: Wednesday's ETF Movers: MCHI, PSI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday's ETF Movers: MCHI, PSI

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Oracle Corp (Symbol: ORCL), where a total of 41,570 contracts have traded so far, representing approximately 4.2 million underlying shares. That amounts to about 70.3% of ORCL's average daily trading volume over the past month of 5.9 million shares. Especially high volume was seen for the $180 strike call option expiring November 15, 2024, with 4,885 contracts trading so far today, representing approximately 488,500 underlying shares of ORCL. Below is a chart showing ORCL's trailing twelve month trading history, with the $180 strike highlighted in orange:
Qualcomm Inc (Symbol: QCOM) saw options trading volume of 54,273 contracts, representing approximately 5.4 million underlying shares or approximately 64% of QCOM's average daily trading volume over the past month, of 8.5 million shares. Especially high volume was seen for the $170 strike call option expiring December 20, 2024, with 2,881 contracts trading so far today, representing approximately 288,100 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $170 strike highlighted in orange:
And Alpha & Omega Semiconductor Ltd. (Symbol: AOSL) saw options trading volume of 1,789 contracts, representing approximately 178,900 underlying shares or approximately 63.1% of AOSL's average daily trading volume over the past month, of 283,460 shares. Especially high volume was seen for the $27.50 strike put option expiring November 15, 2024, with 1,360 contracts trading so far today, representing approximately 136,000 underlying shares of AOSL. Below is a chart showing AOSL's trailing twelve month trading history, with the $27.50 strike highlighted in orange:
For the various different available expirations for ORCL options, QCOM options, or AOSL options, visit StockOptionsChannel.com.
Also see:
REITs Hedge Funds Are Selling
CRBU shares outstanding history
PMCT Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Wednesday Option Activity: ORCL, QCOM, AOSL

The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
ALPHA AND OMEGA SEMICONDUCTOR LTD (AOSL) is a small-cap value stock in the Semiconductors industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of a broad portfolio of power semiconductors. Its portfolio of products targets high-volume applications, including personal computers, graphic cards, game consoles, flat panel televisions (TV), home appliances, power tools, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. Its product portfolio consists of two categories: power discrete and power ICs that serve the large and diverse analog market for power semiconductors. Its power discrete products consist of low, medium and high voltage power MOSFETs. Its power ICs deliver power and control and regulate the power management variables, such as the flow of current and level of voltage. Its portfolio of power semiconductors includes approximately 2,700 products. It conducts its operations in the United States of America, Hong Kong, China, and South Korea.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ALPHA AND OMEGA SEMICONDUCTOR LTD
AOSL Guru Analysis
AOSL Fundamental Analysis
CANON INC (ADR) (CAJPY) is a large-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Kenneth Fisher changed from 68% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Canon Inc. is mainly engaged in the development, production, sale of office equipment, imaging systems, medical systems, industrial equipment and the provision of related services. The Company operates in four business segments. The Office segment provides office multifunction machines, laser multifunction machines, laser printers, digital continuous slip printers, digital cut sheet planters, wide format printers, and document solutions. The Imaging System segment's products include lens-interchangeable digital cameras, compact digital cameras, digital video cameras, digital cinema cameras and others. The Industrial Equipment and Others segment provides semiconductor exposure devices, FPD exposure devices, vacuum thin film forming devices, organic EL display manufacturing devices, die bonders, micromotors, network cameras, handy terminals and others. The Medical System segment provides digital radiography, X-ray diagnostic equipment, ultrasound diagnostic equipment and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CANON INC (ADR)
CAJPY Guru Analysis
CAJPY Fundamental Analysis
NATIONAL PRESTO INDUSTRIES INC. (NPK) is a small-cap growth stock in the Aerospace & Defense industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: National Presto Industries, Inc. is engaged in various business segments, which includes Housewares/Small Appliance, Defense and Safety. The Housewares/Small Appliance segment designs, markets and distributes housewares and small electrical appliances, including pressure cookers and canners, kitchen electrics, and comfort appliances. The Defense segment manufactures 40-millimeter (mm) ammunition, precision mechanical and electro-mechanical assemblies, medium caliber cartridge cases and metal parts; performs Load, Assemble and Pack (LAP) operations on ordnance-related products primarily for the United States Government and prime contractors, and manufactures detonators, booster pellets, release cartridges, lead azide and others. The Safety segment offers systems that provide early warning of conditions that could ultimately lead to significant losses and also offers carbon monoxide alarms with large digital displays and an array of voice messages that clearly inform of incipient danger.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of NATIONAL PRESTO INDUSTRIES INC.
NPK Guru Analysis
NPK Fundamental Analysis
Kenneth Fisher Portfolio
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Kenneth Fisher Strategy Daily Upgrade Report - 11/1/2024

Texas Instruments TXN shares have surged 18.1% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 23.4%.
It has also underperformed the Zacks Semiconductor - General industry and peers Amtech Systems ASYS, NVIDIA NVDA and Alpha and Omega Semiconductor AOSL.
Over the same time frame, shares of Amtech Systems, NVIDIA, and Alpha and Omega Semiconductor have gained 43.1%, 158% and 37.2%, respectively. The industry appreciated 106.9% year to date.
The underperformance was attributed to weakness in the Industrial and Automotive end markets. Sluggishness in the Analog, Embedded Processing and Other segments is a concern.
Texas Instruments Incorporated Price and Consensus
Texas Instruments Incorporated price-consensus-chart | Texas Instruments Incorporated Quote
TXN’s Q3 Guidance Not So Bright
For the third quarter of 2024, Texas Instruments expects revenues in the range of $3.94-$4.26 billion compared with the year-ago quarter’s $4.53 billion.
The Zacks Consensus Estimate for revenues is pegged at $4.11 billion, suggesting a year-over-year fall of 9.29%.
In the third quarter of 2024, TXN expects earnings in the range of $1.24-$1.48 per share compared with the year-ago quarter's $1.85 per share.
The consensus mark for earnings is pegged at $1.36 per share, unchanged over the past 30 days. This indicates a year-over-year decline of 24.44%.
Product Innovations to Aid TXN’s Prospects
The recent launches in the Automotive and Industrial end markets bode well for TXN stock.
Texas Instruments’ newest launch of 1.5W isolated DC/DC modules with integrated transformers, helping engineers shrink the isolated bias power supply size in automotive and industrial systems by more than 89%, is a notable development.
The introduction of six MagPack power modules designed to improve power density and efficiency is also a plus. This advancement allows designers of industrial, enterprise and communications applications to achieve solid performance levels.
The unveiling of the AWR2544 77GHz mm-wave radar sensor chip, the industry's first for satellite radar architectures, enabling higher levels of autonomy by improving sensor fusion and decision-making in ADAS might gain solid traction in the Automotive market.
Expansion of 300 MM Wafer Fab Facility Bodes Well for TXN
Texas Instruments’ investments in the 300 mm wafer fab manufacturing capacity, RFAB2, is a major development, waving the path for its prospects in the semiconductor content particularly in industrial and automotive.
The new manufacturing facility has started initial production and will ramp up eventually in the coming months to support customer demands at a large scale.
This new fab will manufacture more than 100 million analog chips every day that will go into electric vehicles mostly.
Zacks Rank and Valuation
Texas Instruments’ shares are trading at a premium at this moment, as suggested by a Value score of F.
The stock is trading with a forward 12-month Price/Sales of 10.7X compared with the sector’s 6.07X.
TXN currently carries a Zacks Rank #3 (Hold), implying that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report
Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

TXN Rises 18% Year to Date: How Should Investors Play the Stock?

In trading on Wednesday, the Invesco Semiconductors ETF is outperforming other ETFs, up about 0.9% on the day. Components of that ETF showing particular strength include shares of Ultra Clean Holdings, up about 7.1% and shares of Alpha and Omega Semiconductor, up about 3.2% on the day.
And underperforming other ETFs today is the iShares Mortgage Real Estate ETF, down about 3.4% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Rithm Capital, lower by about 4.6%, and shares of Ready Capital, lower by about 2.3% on the day.
VIDEO: Wednesday's ETF Movers: PSI, REM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.