Micron's stock has retreated nearly 30% from April's multi-year highs and trades at a mere 7.9 times forward earnings. So Micron's operations are humming right along while most of the semiconductor industry suffers production-level restrictions. Production technology upgrades are generally on time and within Micron's generous infrastructure budgets. Micron runs its own chip-making plants, which helps the company dodge the logjam in the leading contract manufacturing specialists' production pipelines. ![]() Even the consumer-facing business landed record sales this year.Īll of these records were achieved in the midst of a sector-wide manufacturing crisis. Automotive and industrial memory chips also topped their old record sales by significant margins. Micron set many operating records in the recently completed fiscal year 2021. All of these important metrics have surged higher in the last two years: These generous profits were generated from $27.7 billion of top-line revenue. Micron generated $2.4 billion of free cash flow and $12.6 billion in earnings before interest, taxes, depreciation, and amortization ( EBITDA) over the last four quarters. Micron's stock is in dire straits at the moment. Micron shares trade at an oversize discount todayĪnders Bylund (Micron Technology): Memory chip maker Micron Technology has seen some hard times lately. I see plenty of room for this chip company to grow - it could be double the size it is now in another four years' time. But over the next few years, 5G will continue to proliferate and dozens of more technologically advanced vehicle models will hit the road. Chip industry sales are cyclical and can ebb and flow from year to year. Granted, as is the case with semiconductor stocks, I don't expect this advance to move up in a straight line. With its own core business still growing at a fast double-digit percentage clip, adding a new breed of chip designs into the mix should help Skyworks sustain its momentum. The acquisition will add about $400 million a year in sales at the most recent annualized run rate and yield Skyworks exposure to some massive new markets, specifically the growing connected and electric auto movement. But it will get a big boost in this department from the acquisition of Silicon Laboratories' (NASDAQ: SLAB) automotive and network infrastructure segment. The market for chips for products outside of smartphones - which Skyworks calls its "broad markets" business - has been steadily growing for years and makes up about one-third of revenue. It also plays a hand in the design of infrastructure equipment used to build telecommunications systems, as well as the design of other devices that contain connectivity semiconductors: things like smart home devices, audio equipment, internet modems and routers, fitness equipment, and security systems. But Skyworks is much more than a smartphone component supplier. Sales at Skyworks are fast on the rise as a result, up 41% over the last two-year stretch - impressive considering sales briefly hit the skids last spring.ĥG phones will no doubt continue to provide some upward momentum for Skyworks in the next three years as more of the next-gen mobile network becomes available to the masses. The initial 5G mobile network rollout from telecoms translated into booming sales of new smartphones with a 5G connection-enabling chip in them. Nicholas Rossolillo (Skyworks Solutions): The last couple of years have been busy ones for mobile connectivity chip designer Skyworks Solutions. An ever expanding need for high-quality mobile connectivity All Rights Reserved.Image source: Getty Images. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. ![]() Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
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