Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Thematic (Sector/Industry)

<ul><li>Like last week, I will do a meta-level overview summary. That’s why I read these calls; to understand the whole, you must understand the parts.</li><li>Smartphone markets continue to recover, but the demand is sluggish, and handsets should be flattish for the year. Industrial is bottoming at multiple companies, and Skyworks looks like it lost RF share to Qorvo. Telecom looks to be bottoming (NXPI).</li><li>I think it's pretty clear that the automotive cycle should be bought, not sold. And we continue to see strength in consumers (AMKR, QCOM). I am starting to like the Rambus story again, as I think their client business, the PMIC, and potentially CXL businesses could add 200m+ incremental revenue on top of the DDR5 share story in the coming years.</li></ul>

Like last week, I will do a meta-level overview summary. That’s why I read these calls; to understand the whole, you must understand the parts.Smartphone markets continue to recover, but the demand is sluggish, and handsets should be flattish for the year. Industrial is bottoming at multiple companies, and Skyworks looks like it lost RF share to Qorvo. Telecom looks to be bottoming (NXPI).I think it's pretty clear that the automotive cycle should be bought, not sold. And we continue to see strength in consumers (AMKR, QCOM). I am starting to like the Rambus story again, as I think their client business, the PMIC, and potentially CXL businesses could add 200m+ incremental revenue on top of the DDR5 share story in the coming years.

Earnings (AMKR, RMBS, NXPI, SWKS, ENTG, QCOM, WOLF, QRVO, ACLS)

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>From Skyworks Solutions' Q1 2024 Earnings Call, the company delivered solid financial results despite pressing macroeconomic conditions.</li><li>The revenue generated in Q1 was $1.202 billion and the company posted an earnings per share of $1.97, generating $775 million in operating cash flow.</li><li>This represents a record free cash flow margin of 63%, highlighting strong working capital management and decreasing capital expenditure intensity.</li></ul>

From Skyworks Solutions' Q1 2024 Earnings Call, the company delivered solid financial results despite pressing macroeconomic conditions.The revenue generated in Q1 was $1.202 billion and the company posted an earnings per share of $1.97, generating $775 million in operating cash flow.This represents a record free cash flow margin of 63%, highlighting strong working capital management and decreasing capital expenditure intensity.

Skyworks Solutions: Is The Strategic Expansion in Mobile and Broad Markets Fuelling Growth? - Major Drivers

<ul><li>Skyworks Solutions, Inc. delivered an all-around beat in the previous quarter.</li><li>The company achieved a revenue milestone of 219 billion, with earnings per share reaching 20 and an impressive $366 million operating cash flow.</li><li>The company emphasizes a strategic focus on high-growth segments, including power isolation chips, connectivity solutions, in-vehicle infotainment, and ADAS for autonomous driving.</li></ul>

Skyworks Solutions, Inc. delivered an all-around beat in the previous quarter.The company achieved a revenue milestone of 219 billion, with earnings per share reaching 20 and an impressive $366 million operating cash flow.The company emphasizes a strategic focus on high-growth segments, including power isolation chips, connectivity solutions, in-vehicle infotainment, and ADAS for autonomous driving.

Skyworks Solutions Inc.: Electrifying Growth in IoT and Automotive Sectors! - Major Drivers

<ul><li>This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. </li><li>I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.</li><li>We are now seeing the beginning of Industrial weakening.</li></ul>

This earnings season, Industrial semiconductor demand has been the biggest incremental softening in end market demand. That’s not surprising. I have been talking about the FIFO (First-In, First-Out) cycle, and the only two remaining segments that have not had a meaningful correction are Industrial and Automotive.We are now seeing the beginning of Industrial weakening.

<ul><li>Skyworks Solutions Inc. delivered a revenue beat in the most recent quarterly result with earnings on par with Wall Street expectations.</li><li>The company reported $1.071 billion in revenue and earnings per share of $1.73.</li><li>The company also made strides in diversifying its portfolio, particularly in automotive and infrastructure markets, resulting in double-digit year-over-year revenue growth.</li></ul>

Skyworks Solutions Inc. delivered a revenue beat in the most recent quarterly result with earnings on par with Wall Street expectations.The company reported $1.071 billion in revenue and earnings per share of $1.73.The company also made strides in diversifying its portfolio, particularly in automotive and infrastructure markets, resulting in double-digit year-over-year revenue growth.

Skyworks Solutions Inc.: Embracing AI & Data – The Master Plan for Future Expansion! - Major Drivers

United States

Skyworks Solutions, Inc., a wireless semiconductor company, designs and manufactures radio frequency and complete semiconductor system solutions for mobile communications applications.  The Company provides front-end modules, radio frequency subsystems, and system solutions to wireless handset and infrastructure customers worldwide.

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Skyworks Solutions (SWKS US)

Earnings (AMKR, RMBS, NXPI, SWKS, ENTG, QCOM, WOLF, QRVO, ACLS)

Like last week, I will do a meta-level overview summary. That’s why I read these calls; to understand the whole, you must understand the parts....

Fabricated Knowledge

Skyworks Solutions: Is The Strategic Expansion in Mobile and Broad Markets Fuelling Growth? - Major Drivers

From Skyworks Solutions' Q1 2024 Earnings Call, the company delivered solid financial results despite pressing macroeconomic conditions. The...

Baptista Research

Skyworks Solutions Inc.: Electrifying Growth in IoT and Automotive Sectors! - Major Drivers

Skyworks Solutions, Inc. delivered an all-around beat in the previous quarter. The company achieved a revenue milestone of 219 billion, with...

Baptista Research

Semiconductor Cycles: Industrial and EVs

Plus my new taxonomy of cycles! Where I think each end market is in the cycle. This earnings season, Industrial semiconductor demand has been the...

Fabricated Knowledge

Skyworks Solutions Inc.: Embracing AI & Data – The Master Plan for Future Expansion! - Major Drivers

Skyworks Solutions Inc. delivered a revenue beat in the most recent quarterly result with earnings on par with Wall Street expectations. The...

Baptista Research

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