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5 Chip Stocks To Watch Are Moving Up, With Apple’s Big Event March 21

A basket of top-rated chip stocks are making moves around buy points now, with several moving up in Friday trading. And Apple ( AAPL ), a big user of semiconductors, just sent out press invitations for a March 21 event where it’s expected to introduce a small iPhone and another iPad. So which chip stocks are highly rated by IBD and get at least some of their business from Apple? Broadcom ( AVGO ), IBD Leaderboard stock Macom Technology Solutions ( MTSI ), Cirrus Logic ( CRUS ), Mellanox ( MLNX ) and Nvidia ( NVDA ) make the list. All are at least somewhat diversified, with revenue streams in everything from data center and mobile networking systems to powerful graphics chips for virtual reality and gaming, to connected car technology and now even artificial intelligence. Chips And Profit IBD 50 stock Broadcom was up more than 3% in midday trading in the stock market today , putting it just above and out of buy range from a double-bottom base. Macom was up nearly 6%, similarly above its ideal buy range. Broadcom and Macom Technology Solutions made IBD’s Stocks on The Move screen Friday, heading up in high volume. Broadcom made Thursday morning’s screen too. Early Thursday, Broadcom’s management team had presented at a Susquehanna Financial analysts’ conference. “It’s a great time to operate in the semiconductor industry,” CEO Hock Tan said there. “You have a substantial profit pool … compared to similar industries of the same size.” Loading the player… Broadcom had started giving up some of its gains as stock indexes dipped into the red with falling oil prices, but it ended up with a 1.7% rise Thursday. Several other top-rated chip stocks moved up early Friday after declining Thursday. Cirrus Logic was up about 3% at midday. Mellanox was up 2% and Nvidia was up fractionally. On Thursday, Mellanox had slipped to the bottom of buy range, as had Macom Technology Solutions, while Nvidia had edged down to about 4% under a buy point from a cup base. While the stock market’s in a confirmed uptrend, much of the action is choppy with ups and downs in oil prices and economic concerns around the globe. Going into Friday trading, all five of these top-ranked chipmakers had fallen from a week ago, between 1% and 7%, with the S&P 500 index down 1%. Cirrus Logic and Mellanox were up 14% and 15% this year, respectively — the only ones of the five with notable gains. Nvidia, an IBD 50 stock, has the strongest IBD Composite Rating of the bunch, a best-possible 99, taking into account earnings growth, stock price gains and several other metrics. The others range between 90 and 98 in Composite Rating. Apple Chips It will take awhile for teardowns to show whose chips go into whatever new products Apple introduces, and longer for those chips to translate into reported sales, and lagging iPhone sales growth lately hasn’t helped the chips. Apple Sets March 21 To Launch Small iPhone, New iPad, Watch Bands https://t.co/MxIpxMFKvc pic.twitter.com/iPxQ1lTAFF — Investors.com (@IBDinvestors) March 10, 2016 Other markets are driving growth, however. Nvidia, for instance, said in its fourth quarter report, in February, that it’s at the “center of four exciting growth opportunities — PC gaming, VR (virtual reality), deep learning and self-driving cars.” Nvidia is a partner to electric car maker Tesla Motors ( TSLA ) and other auto manufacturers, and said last month that it’s in an alliance with Facebook ( FB ) and Chinese Internet company Alibaba Group ( BABA ) for speedy artificial intelligence chips.

Genpact Sees Surge In Outsourcing Business; BPO Stocks Up

Highly rated but modestly traded Genpact ( G ) stock bumped up a fraction Friday, after a day of show-and-tell at its analyst day Thursday that spotlighted a surge of growth for the outsourcing business. Many rival stocks were up even more, with Paychex ( PAYX ) stock up 2% in midday trading in the stock market today . William Blair analyst Anil Doradla came away “with the sense that business fundamentals were intact and that the company’s deal pipeline is healthy,” he wrote in a research note Friday. Genpact executives suggested that the company had plenty of room for growth in its business process outsourcing market, because revenue for the market overall rose 35%, to $500 billion, in the past year, while Genpact sales rose 8%, to $2.46 billion, Doradla said. But he also said BPO growth will slow. Doradla put Genpact trading at 18.8 times William Blair’s 2016 EPS estimate for Genpact, “a slight premium to its peers in the fast-growth BPO industry,” which is trading at 17.6 times estimated earnings, he said. BPO is found in more than one industry group. In IBD’s Commercial Services-Outsourcing group, Genpact ranks as the fourth-largest company, with a market cap of $5.6 billion. The group is led by Paychex with an $18.9 billion market value, Cintas ( CTAS ) at $9.5 billion and Aramark ( ARMK ) at $7.7 billion. Shares of both Cintas and Aramark were up more than 1% midday Friday. IBD’s Computer-Tech Services also hosts some heavyweight outsourcers, including Infosys ( INFY ) with a $40.3 billion market cap, and Cognizant Technology Solutions ( CTSH ) at $33.9 billion. IBM ( IBM ) is included in this group, although it does much more than outsourcing. Infosys stock was up a fraction midday Friday, while Cognizant was more than 2% and IBM nearly 2%. Genpact specializes in financial services outsourcing, contributing about 42% of its revenue. Manufacturing and health care are its other two main markets. Sales to its largest customer, General Electric ( GE ), fell 1% last year to 19% of Genpact’s total revenue. Genpact is a GE spinoff. “Overall, we came away with a bullish tone from management, both at a company-specific level and with regard to the overall BPO market,” Doradla said. “Management highlighted that the company is witnessing healthy demand in its business and that Genpact has an active deal pipeline. “Some of the key drivers for the upwardly revised figures include customers increasingly viewing BPO companies as transformation partners who not only offer a cost arbitrage, but also provide valuable insights into business operations. Specific areas in which the industry is increasingly engaging clients include IoT, big data and cybersecurity. “Bottom line, we believe that the BPO industry is poised for strong overall growth over the next several years and that Genpact stands to grow at a faster pace than the overall industry due to domain expertise and strong client relationships.” Genpact carries an IBD Composite Rating of 96, with 99 the highest, and currently is an IBD Leaderboard stock. Trading near 26.50 midday Friday, it is within range from a 26 buy point touched last month.

5 Chip Stocks To Watch, With Apple’s Big Event March 21

A basket of top-rated chip stocks are making moves around buy points now. And Apple ( AAPL ), a big user of semiconductors, just sent out press invitations for a March 21 event where it’s expected to introduce a small iPhone and another iPad. So which chip stocks are highly rated by IBD and get at least some of their business from Apple? Broadcom ( AVGO ), IBD Leaderboard stock Macom Technology ( MTSI ), Cirrus Logic ( CRUS ), Mellanox ( MLNX ) and Nvidia ( NVDA ) make the list. All are at least somewhat diversified, with revenue streams in everything from data center and mobile networking systems to powerful graphics chips for virtual reality and gaming, to connected car technology and now even artificial intelligence. Chips And Profit Going into Friday trading, IBD 50 stock Broadcom was a few percentage points into buy range from a double bottom base. Broadcom made IBD’s Stocks On The Move screen early Thursday, heading up in high volume alongside Google owner Alphabet ( GOOGL ) and a few other stocks. Early Thursday, Broadcom’s management team had presented at a Susquehanna Financial analysts’ conference. “It’s a great time to operate in the semiconductor industry,” CEO Hock Tan said there. “You have a substantial profit pool … compared to similar industries of the same size.” Loading the player… Broadcom started giving up some of its gains as stock indexes dipped into the red with falling oil prices, but it ended up with a 1.7% rise for the day. Several other top-rated chip stocks declined Thursday. Mellanox slipped to the bottom of buy range. So did Macom Technology. Nvidia edged down to about 4% under a buy point from a cup base. While the stock market’s in a confirmed uptrend, much of the action is choppy with ups and downs in oil prices and economic concerns around the globe. All five of these top-ranked chipmakers have fallen from a week ago, between 1% and 7%, with the S&P 500 index down 1%. Cirrus Logic and Mellanox were up 14% and 15% this year, respectively, going into Friday. Macom was up 1% while Avago was down 1% and Nvidia down 4%. Nvidia, an IBD 50 stock, has the strongest IBD Composite Rating of the bunch, a best-possible 99, taking into account earnings growth, stock price gains and several other metrics. The others range between 90 and 98 in Composite Rating. Apple Chips It will take awhile for teardowns to show whose chips go into whatever new products Apple introduces, and longer for those chips to translate into reported sales, and lagging iPhone sales growth lately hasn’t helped the chips. Apple Sets March 21 To Launch Small iPhone, New iPad, Watch Bands https://t.co/MxIpxMFKvc pic.twitter.com/iPxQ1lTAFF — Investors.com (@IBDinvestors) March 10, 2016 Other markets are driving growth, however. Nvidia, for instance, said in its fourth quarter report, in February, that it’s at the “center of four exciting growth opportunities — PC gaming, VR (virtual reality), deep learning and self-driving cars.” Nvidia is a partner to electric car maker Tesla Motors ( TSLA ) and other auto manufacturers, and said last month that it’s in an alliance with Facebook ( FB ) and Chinese Internet company Alibaba Group ( BABA ) for speedy artificial intelligence chips.