Tag Archives: mlnx

3 Top Chipmakers Breach Key Levels, But One Is In Profit-Taking Zone

Loading the player… Chipmaker Mellanox Technologies ( MLNX ) is plunging in giant volume in the stock market today on the heels of disappointing guidance issued late Wednesday. Mellanox beat Q1 earnings and revenue expectations, but its Q2 revenue outlook widely missed expectations. Shares gapped below their 50-day moving average and neared the 200-day line in intraday trade, tumbling more than 12%. Let’s take a look at how some highly rated chip peers are doing: Cirrus Logic ( CRUS ), Inphi ( IPHI ), MaxLinear ( MXL ) and Silicon Motion Technology ( SIMO ). Apple ( AAPL ) supplier Cirrus Logic is falling 3.1% in quick turnover, dropping below its 50-day moving average. Shares are now trading 10% below their May high and a potential buy point from a long consolidation pattern. The drop comes ahead of Apple’s earnings report next Tuesday, where we’ll get a sense of the consumer tech giant’s iPhone production — which has an impact on its suppliers. Meanwhile, Apple shares fell 1.2% intraday. Inphi is dropping back below buy range from a cup base it initially broke out of about a month ago, losing 5.2%. Shares are still extended from a double-bottom entry but are now 10% below their April 1 high. MaxLinear is continuing its rebound today, rising 1.1%, after breaching its 50-day line in Tuesday’s session. On Wednesday, the company tightened its Q1 revenue guidance and raised its gross margin target. And Silicon Motion Tech hit another all-time high in above-average volume in intraday trade, paring its gains to a 0.6% rise by the afternoon. The stock is now in profit-taking zone, with a gain of more than 20% since breaking out of a long cup-with-handle base last month.

Mellanox Tanks On Q2 Guide; But ‘Well Ahead’ Of Intel, Broadcom

Mellanox Technologies ( MLNX ) stock dove Thursday on weaker-than-expected Q2 guidance late Wednesday, but analysts say the IBD Leaderboard stock won’t succumb to competition from “large incumbents” Intel ( INTC ) and Apple ( AAPL ) supplier Broadcom ( AVGO ). Summit Research analyst Srini Nandury calls Mellanox stock “the name to own in this space,” talking about the Ethernet and Infiniband markets. But Mellanox stock was down 14% in midday trading on the stock market today , at a two-month low below 48. For Q1, Mellanox reported 81 cents earnings per share ex items on $196.8 million in sales, up a respective 35% and 34%. Both metrics topped the consensus of 14 analysts polled by Thomson Reuters for 75 cents and $191.7 million. IBD take: Mellanox is a big mover today, and the move is down, but it had been doing well. The Q2 guide was Wall Street’s sticking point, Credit Suisse analyst John Pitzer wrote in a research report, though he retained an outperform rating and 60 price target on Mellanox stock. Current-quarter sales guidance for $180 million to $185 million, up 12% at the midpoint, missed Wall Street expectations for $214.6 million, Pitzer wrote. Q1 was Mellanox’s seventh consecutive beat and fourth straight of record quarterly revenue, Piper Jaffray analyst Andrew Nowinski and Summit Research analyst Srini Nandury wrote in separate reports. Nowinski maintained his overweight rating and 65 price target on Mellanox stock. Nandury rates Mellanox stock a buy and also has a 65 price target. Both note Intel’s Omnipath isn’t, so far, holding a candle to Mellanox’s 100-gigabyte/second Infiniband product. Omnipath is also 100GB, but Mellanox is on track to launch 200GB and 400GB products in 2017 and a 1-terabyte/second product early next decade. “Mellanox is seemingly ahead of everybody in the market and is executing flawlessly on the Infiniband road map,” Nandury wrote. He said Mellanox is the only OEM to deliver 25/50/100-Gb Ethernet adapters in addition to switches, “well ahead of Broadcom.” Intel stock was down a fraction and Broadcom stock down 1% midday Wednesday. No. 1 chipmaker Intel, late Tuesday, reported mixed Q1 results on a minimal year-over-year climb in PC sales and announced it would layoff 12,000 in an effort to focus on stronger segments.

Mellanox Tanks On Q2 Guidance, But ‘Well Ahead’ Of Intel, Broadcom

Mellanox Technologies ( MLNX ) stock dove Thursday on weaker-than-expected Q2 guidance late Wednesday, but analysts say the IBD Leaderboard stock won’t succumb to competition from “large incumbents” Intel ( INTC ) and Apple ( AAPL ) supplier Broadcom ( AVGO ). Summit Research analyst Srini Nandury calls Mellanox stock “the name to own in this space,” talking about the Ethernet and Infiniband markets. But Mellanox stock was down 14% in midday trading on the stock market today , at a two-month low below 48. For Q1, Mellanox reported 81 cents earnings per share ex items on $196.8 million in sales, up a respective 35% and 34%. Both metrics topped the consensus of 14 analysts polled by Thomson Reuters for 75 cents and $191.7 million. IBD take: Mellanox is a big mover today, and the move is down, but it had been doing well. The Q2 guide was Wall Street’s sticking point, Credit Suisse analyst John Pitzer wrote in a research report, though he retained an outperform rating and 60 price target on Mellanox stock. Current-quarter sales guidance for $210 million to $215 million, up 30% at the midpoint, was slightly short of Wall Street expectations for $214.6 million, Pitzer wrote. Q1 was Mellanox’s seventh consecutive beat and fourth straight of record quarterly revenue, Piper Jaffray analyst Andrew Nowinski and Summit Research analyst Srini Nandury wrote in separate reports. Nowinski maintained his overweight rating and 65 price target on Mellanox stock. Nandury rates Mellanox stock a buy and also has a 65 price target. Both note Intel’s Omnipath isn’t, so far, holding a candle to Mellanox’s 100-gigabit/second (Gb/s) Infiniband product. Omnipath is also 100 Gb/s, but Mellanox is on track to launch 200-Gb/s and 400-Gb/s products in 2017 and a 1-terabit/second (Tb/s) product early next decade. “Mellanox is seemingly ahead of everybody in the market and is executing flawlessly on the Infiniband road map,” Nandury wrote. He said Mellanox is the only OEM to deliver 25/50/100-Gb Ethernet adapters in addition to switches, “well ahead of Broadcom.” Intel stock was down a fraction and Broadcom stock down 1% midday Wednesday. No. 1 chipmaker Intel, late Tuesday, reported mixed Q1 results on a minimal year-over-year climb in PC sales and announced it would lay off 12,000 in an effort to focus on stronger segments.