In today’s briefing:
- Intel Cancels 20A. Now Why Would They Go & Do That?
- AMD Acquires ZT Systems for $4.9B, Challenging NVIDIA in the AI Infrastructure Market
- Broadcom Surpasses Q3 Earnings Estimates but Guidance Worries Investors, Shares Drop 7%
- TLN: Powered for Free Cash Flow, PT to $185
- Bill Holdings Inc.: Expanded Product Portfolio & Other Factors Driving Our Optimism! – Financial Forecasts
- Marvell Technology Group: Expansion in Artificial Intelligence (AI) and Data Center Solutions & Focus on Custom Silicon Growth! – Major Drivers
- HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers
- Abercrombie & Fitch Co.: Expanded Product Categories & Brand Partnerships Driving Our Optimism! – Major Drivers
- HP Inc.: A Mixed Financial Picture! – Major Drivers
- The Cooper Companies Inc.: Focus on Myopia Management & Market Education & Other Major Drivers
Intel Cancels 20A. Now Why Would They Go & Do That?
- Intel’s CFO says the company is going to “kind of skip over productizing 20A”
- This decision removes an important, looming milestone from Intel’s roadmap, i.e. the ramp of Arrow Lake later this year
- The decision to outsource all Arrow Lake tiles, apart from final packaging, strongly suggests that Intel 3 and Intel 18A are not capable of a cost-competitive volume ramp
AMD Acquires ZT Systems for $4.9B, Challenging NVIDIA in the AI Infrastructure Market
- The acquisition positions AMD to capitalize on the booming AI infrastructure market, which is expected to grow to $372.9 billion by 2029, leveraging ZT Systems’ hyperscale computing and integration capabilities.
- AMD will use ZT Systems’ experience in AI infrastructure deployment for cloud providers like AWS and Azure, helping it compete with NVIDIA’s 70% market share and Intel’s data center push.
- Analysts expect the acquisition to be financially accretive by 2025, with ZT Systems enabling AMD to provide comprehensive AI solutions, boosting its presence in the cloud, AI, and enterprise sectors.
Broadcom Surpasses Q3 Earnings Estimates but Guidance Worries Investors, Shares Drop 7%
- Revenue’s surged 47% YoY, driven by a 200% increase in infrastructure software revenue. Despite strong revenue growth, the company posted a $1.88B net loss due to a $4.5B tax provision
- AI revenue is projected to grow by 10% sequentially in Q4, surpassing $3.5B, and is expected to total $12B for fiscal 2024. VMware annualized booking value increased 32% QoQ.
- Despite beating Q3 estimates, Broadcom’s Q4 revenue guidance of $14B fell short of the $14.04B expected by analysts. This led to a 7% drop in shares post-earnings.
TLN: Powered for Free Cash Flow, PT to $185
- TLN held an investor day where its management laid out the free cash flow the Company should generate over the next two years and how it was going to happen.
- TLN is projecting adjusted EBITDA that makes our estimate look very conservative. TLN is forecasting 2025 adjusted EBITDA of $926 million to $1.175 billion.
- The expected free cash flow over the next two years is powering TLN to raise their stock buyback program by $1.1 billion.
Bill Holdings Inc.: Expanded Product Portfolio & Other Factors Driving Our Optimism! – Financial Forecasts
- BILL’s fiscal Q4 2024 earnings release and conference call signified a noteworthy closure to its fiscal year, presenting both accomplishments and areas for improvement.
- The company, with its leadership featuring CEO Rene Lacerte and CFO John Rettig, outlined a series of strategic initiatives and financial outcomes that underline its standing in the financial operations sector, particularly for small to midsized businesses (SMBs).
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Marvell Technology Group: Expansion in Artificial Intelligence (AI) and Data Center Solutions & Focus on Custom Silicon Growth! – Major Drivers
- Marvell Technology, Inc.’s Q1 2025 earnings report reflects a strong start to the fiscal year with revenue of $1.16 billion, surpassing the midpoint of guidance.
- The overachievement was largely driven by higher-than predicted results from the company’s data center operations, which reported $816 million in revenue for the quarter.
- The company anticipates such performance and growth to continue throughout the fiscal year, especially in light of initial shipments of their custom AI compute programs.
HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers
- HEICO Corporation’s third quarter fiscal 2024 results reveal a robust financial performance, with significant increases in consolidated operating income and net sales that set new records for the company.
- The earnings call provided a comprehensive analysis of HEICO’s various segments and strategic initiatives, showing a strong trajectory in its core markets, underscored by recent acquisitions and expanded product lines.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Abercrombie & Fitch Co.: Expanded Product Categories & Brand Partnerships Driving Our Optimism! – Major Drivers
- Abercrombie & Fitch Co. recently unveiled its results for the second quarter of 2024, divulging key financial metrics and strategic initiatives that might influence investor sentiment.
- The company exceeded prior projections, setting second-quarter records with a robust 21% growth in net sales, reaching $1.1 billion, alongside an impressive operating margin of 15.5%.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
HP Inc.: A Mixed Financial Picture! – Major Drivers
- HP Inc. recently presented its Q3 2024 earnings, showing a mixed financial picture characterized by revenue growth and challenges in profitability.
- As the first return to revenue growth in nine quarters, a modest 2%, was noted mostly due to strong performance in Personal Systems, including both consumer and commercial segments.
- The company experienced a notable recovery in commercial PCs, adhering to their expectations and suggesting a stabilizing market.
The Cooper Companies Inc.: Focus on Myopia Management & Market Education & Other Major Drivers
- Cooper Companies’ latest earnings for the third quarter of 2024 showcased the company reaching significant financial milestones while elaborating on strategic achievements and future outlooks.
- The major highlight was CooperCompanies achieving its first-ever billion-dollar revenue quarter, with both divisions reporting record revenues.
- Additionally, the company boasted about margin improvements which supported double-digit earnings growth and record non-GAAP quarterly earnings.
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