Avery Schumer
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Avery Schumer in Sector Report,

4 Interesting Semiconductor Picks

While holding a conference call with clients today, Argus Director Of Research Jim Kelleher laid out the four names in the semiconductor space Argus thinks are most interesting.


Argus was excited about NVIDIA Corporation . Once a leader in graphics processing, the company has now expanded to growth areas like PC gaming, big data, deep learning, cloud services and professional design. Most exciting, perhaps, is that Nvidia has gotten significantly involved in autonomous cars. Though Kelleher said the share price has run a little high, in the view of Argus there is still potential here.


Calling Broadcom Limited very diversified, Argus said this acquisitive company's experience with purchasing companies has helped it absorb Broadcom very well. Argus holds a $184 price target on the shares, implying 7.5 percent from where they opened trading on Wednesday.


Cavium, Inc , which recently posted in-line earnings and a revenue beat this earnings season, is very strong in network processing, said Argus. Having spoken with the CEO a few weeks ago, Argus is likes Cavium, particularly as the best value play since the share prices of others in this group have run up lately in comparison.


After recapping some of the issues faced by QUALCOMM Incorporated  recently - most notably royalty disputes in China - Argus said the company has regained its market share inSamsung flagship phones with Snapdragon, and that Q3 could see the reverse of negative top and bottom line comps. The Argus price target for Qualcomm shares is $70, while shares traded at $61.64 two hours before the close of Wednesday's market session.