We have some good news to report in the technology sector. According to the Wall Street Journal (subscription required), global chip sales jumped 5% in August from the previous month, for a six month run of higher sales.

The Semiconductor Industry Association, which tracks sales, reported that gains were made in every sector. The Americas saw an increase of 5.4%, while the Asia Pacific region increased 5.3%. In terms of raw numbers, the Asia Pacific region accounts for more than half of global sales.

Continue reading Global chip sales jump 5% in August

Global chip sales jump 5% in August originally appeared on BloggingStocks on Sun, 04 Oct 2009 11:20:00 EST. Please see our terms for use of feeds.

Intel (NASDAQ: INTC) had Q2 revenues of $8 billion, up 12% from Q1 and beating analyst expectations of $7.23 billion soundly. This was the best quarter-over-quarter growth rate for the world's largest chip manufacturer in more than 20 years -- and a good sign for the technology sector as a whole.

The company's profit of 18 cents a share was more than double the consensus of 8 cents, and the good news sent Intel's stock up 7% in after-hours trading.

This report didn't include a $1.45 billion fine that the European Commission imposed on the company back in May. This would have pushed Intel to a loss of $398 million (7 cents a share). But Intel is appealing the decision, which involved accusations of an abuse of market position. The company puts chips into 80% of computers.

Continue reading Intel has strong Q2, revenues up 12%

Intel has strong Q2, revenues up 12% originally appeared on BloggingStocks on Wed, 15 Jul 2009 08:00:00 EST. Please see our terms for use of feeds.

Continue reading Marvell Technology forecasts a solid second quarter

Marvell Technology forecasts a solid second quarter originally appeared on BloggingStocks on Fri, 29 May 2009 09:40:00 EST. Please see our terms for use of feeds.

AMD (NYSE: AMD) has more problems than a dog has fleas. Over the last year, AMD shares have fallen from $18.35 to $6.41. Margins have been cut by competition with larger rival Intel (NASDAQ: INTC). New products have been late to market.

Wall Street firm Caris & Co. thinks it has some solutions. According to Barron's, the firm has issued a research report that "raised several scenarios for what happens to the struggling chip maker from here."

The first suggestion is the most obvious: the company should dump CEO Hector Ruiz. The stock has fallen under his leadership. The company took on billions in debt by buying graphics chip company ATI.

The other two options are to sell the company to a large tech operation like Samsung or do an LBO. AMD does have $5 billion in debt, so going private might be hard.

There is another approach. Sell ATI. It will not bring the over $5 billion that AMD paid, but it would get the balance sheet back in shape. Get rid of Ruiz and bring in a new CEO. There is room for two chip makers in the PC and server markets, but getting into price wars with a company like Intel has to be avoided to whatever extent possible under new management.

Douglas A. McIntyre is an editor at 247wallst.com.

How can AMD be saved? originally appeared on BloggingStocks on Tue, 15 Jan 2008 08:55:00 EST. Please see our terms for use of feeds.

A federal judge has told Qualcomm (NASDAQ: QCOM) that it can no longer make chips based on three patents held by rival Broadcom (NASDAQ: BRCM). The company can make use of the intellectual property for another year, giving its some time to reach resolution with its rival.

Qualcomm will almost certainly have to pay royalties if it wants to keep marketing chips based on the Broadcom patents.

According to The Wall Street Journal, "The chips are used in two kinds of third-generation cellular networks -- one called EV-DO, which Qualcomm developed, and another called WCDMA that is supported by a broader array of chip makers."

Reuters quotes Broadcom's general counsel as saying, "Broadcom should not have to compete against companies that use Broadcom's own patented technology against us, and this injunction puts a stop to Qualcomm doing just that."

It now appears that Qualcomm's strategy of leaning on customers and rivals has come to an end.

Another court loss for Qualcomm originally appeared on BloggingStocks on Tue, 01 Jan 2008 13:40:00 EST. Please see our terms for use of feeds.

New research from HP may lead to better microchips originally appeared on BloggingStocks on Tue, 16 Jan 2007 18:09:00 EST. Please see our terms for use of feeds.