(Written by Rebecca Lipman. List compiled by Eben Esterhuizen, CFA)
Intel Corporation announced its third-quarter results on Tuesday to sighs of relief from investors. The Associated Press reported net income rose 17 per cent and revenue rose 28 per cent year-over-year, beating Wall Street analyst targets.
Intel’s well-received earnings set new records for microprocessor units shipped, EPS, earnings and increased revenues, which are at $14.2 billion. (via Techzone)
CEO Paul Otellini claims revenue growth is largely attributed to double-digit sales for notebook PCs. “We also saw continued strength in the data centre fuelled by the ongoing growth of mobile and cloud computing.”
The earnings leave investors feeling more confident in the semiconductor chip industry. There was fear that the PC market would take a backseat to other competing devices such as smart phones to tablets.
And while some analysts believe these earnings are a sign microchip processors are gaining traction, others still believe these positive earnings will not stop a seemingly inevitable trend of sluggish demand for PCs from taking its toll on PC-driven industries.
All the same, if Intel is reporting good news, surely that could be a signal of more bullishness to come from other semiconductor stocks?
To help you explore this idea, we collected data on short trends, and identified a list of semiconductor stocks that have seen significant short covering over the last month (i.e. short sellers seem to think the upside outweighs the downside, a bullish development)
Do you share the views of short sellers on these semiconductor stocks? Use this list as a starting point for your own analysis.
analyse These Ideas (Tools Will Open In A New Window)
List sorted by market cap.
1. STMicroelectronics NV (STM): Engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Shares shorted have decreased from 9.44M to 2.20M over the last month, a decrease which represents about 1.14% of the company’s float of 633.24M shares.
2. Vishay Intertechnology Inc. (VSH): Vishay Intertechnology, Inc. manufactures and supplies semiconductors and passive electronic components in the United States, Europe, and Asia. Shares shorted have decreased from 10.26M to 8.15M over the last month, a decrease which represents about 1.45% of the company’s float of 145.69M shares.
3. Spreadtrum Communications Inc. (SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Shares shorted have decreased from 4.86M to 2.45M over the last month, a decrease which represents about 7.49% of the company’s float of 32.19M shares.
4. LDK Solar Co., Ltd. (LDK): Engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. Shares shorted have decreased from 29.82M to 27.62M over the last month, a decrease which represents about 3.23% of the company’s float of 68.09M shares.
5. GSI Technology Inc. (GSIT): Designs, develops, and markets static random access memory (SRAM) products for the networking and telecommunications markets primarily in the United States, China, Malaysia, and Singapore. Shares shorted have decreased from 1.17M to 982.02K over the last month, a decrease which represents about 1.07% of the company’s float of 17.49M shares.
Interactive Chart: Press Play to see how analyst ratings have changed for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.