Out Fox The $treet

AMD has the capacity to surpass forecasted weak sales growth in Q3 and beyond. The chip company appears poised to make the jump to 40%-plus gross margins due to higher margins from EPYC. Look for the long-term EPS target to get hiked above the $0.75 estimate. After a stunning rally to $30, investors might be shocked to find out that  Advanced Micro Devices  ( AMD ) already is at the end of the growth phase, according to forecasts. As per my  previous research , the cyclical nature of the business should haunt the stock at these levels, but the business trends remain far too bullish to dump AMD and run away here. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

NXP Semi. trades back below the original Qualcomm takeover price of $110. The stock has far trailed the SOXX ETF since the merger agreement in October 2016. A flood of stock buybacks in the sector due to failed mergers will lift all boats. The Chinese regulator delays provide a unique play on  NXP Semiconductors ( NXPI ) that has a long-term growth opportunity tied into a potential short-term quick gain. Investors that step in now appear set to win either way. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details. 

The CEO of Broadcom (AVGO) went on CNBC to discuss the $82 offer to buy Qualcomm (QCOM) . Depending on the day, the offer is about a 30% premium above the current price. Broadcom CEO: Our offer for Qualcomm is compelling from CNBC . As Cramer points out, Qualcomm has a plan on the table to boost FY19 profits to about $7 per share. The offer isn't that compelling if the wireless giant can achieve that growth. Do you find the offer as compelling? More research: Qualcomm: NXP Semi. Closure Is Key Disclosure: Long QCOM. Please review the disclaimer page for more details.

NXP Semi reported solid Q1 numbers that were a minor disappointment from original post merger expectations. The company is aggressively buying stock again despite forecasts that aren't so positive. The stock is a bargain with some hints that the company is low-balling the upside potential. While  NXP Semiconductors (NASDAQ: NXPI )  generated  Q1 results  that exceeded analyst estimates, the general tone of the results were a minor disappointment. At the time of the merger, analysts expected significantly higher numbers in 2016 and beyond. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details.  

The forecasted timing issue with action camera revenues pulled forward in FQ2 is rolling over into the next two quarters. The stock trades at healthy multiples for a company facing stalling revenue growth. With the expectation that the market will lose confidence in Ambarella, the recommendation remains to hold off on buying the stock. As presented in my previous research in early September, Ambarella (NASDAQ: AMBA ) was likely to struggle in the short term as the company transitions away from a reliance on action cameras from a prime customer. Due to timing issues pulling revenues forward, the company previously predicted that FQ3 results would miss original high expectations. Read the full article on Seeking Alpha. Disclosure: Long INVN. Please review the disclaimer page for more details. 

NXP Semi has rebounded following positive regulatory news surrounding the Freescale Semi merger.          Investors should patiently await further dips as the inventory correction and volatile merger integration will no doubt lead to more hiccups in the quarterly financials. The stock remains a prime purchase on future dips due to the synergies from the merger and the benefits to the EPS picture. The recent news events surrounding NXP Semi (NASDAQ: NXPI ) and the associated stock action highlights why investors need to stay prepared. The inventory correction in the semiconductor space and the upcoming completion of the Freescale Semi (NYSE: FSL ) merger makes for a volatile few months. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Skyworks terminates PMC-Sierra deal after the target accepts a higher bid from Microsemi. The company was expected to match the minimal increase in the deal price. The stock remains an attractive investment based on organic growth targets not reliant on a deal for PMC-Sierra. In a surprise move, Skyworks Solutions (NASDAQ: SWKS ) stepped away from the bidding war for PMC-Sierra (NASDAQ: PMCS ). Or maybe the move wasn't surprising, watching PMC accept a bid last week where Microsemi (NASDAQ: MSCC ) only increased the bid price by $0.18. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

InvenSense continues to produce solid revenue growth while the stock struggles to gain. Lower gross margins from two large mobile customers are wrongfully blamed for the struggling stock. InvenSense is set up to leverage higher spending into solid leverage going forward. For the last year or so, too much of the focus on InvenSense (NYSE: INVN ) surrounds gross margins. The developer of motion sensing solutions has a stock sitting near multi-year lows while the company continues to fire on all cylinders with surging revenues and customer wins. Read the full article on Seeking Alpha. Disclosure: Long INVN. Please review the disclaimer page for more details. 

NXP Semi has flat-lined since the original excitement over the Freescale merger. Industry consolidation could help improve margins industry wide and provides realistic upside to the current analyst EPS projections for NXP Semi. The stock faces normal risks with a merger that might hold the stock down for now, but investors need to own this stock on approval. NXP Semiconductors (NASDAQ: NXPI ) remains a favorite stock as it leverages a buyout of Freescale Semiconductor (NYSE: FSL ) to higher profits. The stock has mostly stalled at the $100 level following the merger announcement in early March despite some bullish analyst calls. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Texas Instruments (TXN) provided updated guidance for Q3 last Thursday after the market closed and the headlines continue to suggest that TXN guided down or provided less then stellar results. The fact is that TXN guided to the exact midpoints as before - they raised the lower end and lowered the upper end by equal amounts. Why then does the media keep suggesting that TXN along with other semiconducter stocks like Intel (INTC) is forecasting a declining market? My guess is that nobody in the media actually read the TXN release. Here are the details from Q3 2010 Business Outlook : Revenue:  $3.62 – $3.78 billion , compared with the prior range of $3.55 – $3.85 billion EPS:  $0.66 – $0.72 , compared with the prior range of $0.64 – $0.74 . Lets analyze the facts: The revenue mid-point was $3.7B before and now its $3.7B. The EPS mid-point was $0.69 before and $0.69 after. The average analyst estimate is $0.69 and TXN reported $0.62 in Q2. Still looking for any negatives. ...

Teradyne (TER) reported results last night that were explosive. Earnings of $.69 beat analyst estimates by $.22 or over 40% for the 2nd straight quarter. Revenue was up an amazing 38% sequentially. For Q3 they forecast earnings of over $.80 easily beating estimates of only $.46. TER continues to benefit from a fast expanding market in wireless (read smartphones) and smart power management. So what did the stock do? What would you expect for guidance that nearly doubled estimates? Well, in this market at least the stock went up. The gain for the day ended up $.86 or a little over 8%. Not bad, but when you consider the guidance nearly doubled the estimate from back in April but the stock is still down nearly 20% from the highs above $13 it just doesn't add up. And this is even after the large cap semi stocks like Intel (INTC) and Texas Instruments (TXN) had blow out numbers. In all fairness, the market should be concerned about cycle peaks and cyclical volumes in the semiconducter se...

After a decade of extreme negativity for tech stocks, it shouldn't be that surprising that some stocks in the sector have PE multiples unheard of for the sector. After a decade where a typical tech stock fell some 90% from their 2000 peaks, why would investors pile into them regardless of their earnings? After all, why not buy commodity and energy stocks that have been all the craze for the last 5 years. Teradyne (TER) is one such example trading on Friday's close at just 8x 2010 estimates and 5.5x the upper end of 2011 estimates. The stock is down some 85% from its 2000 peak around $100. What could the stock offer investors that were so burned by holding in the early 2000s? For starters, its gone almost unnoticed that TER just reported the highest semiconductor related orders in 10 years. Heck, Stone Fox Capital has been allocated some 20% into tech stocks like Apple (AAPL) and Riverbed Systems (RVBD), but we've mostly ignored the spaces such as semiconductors or communic...