Inphi’s end-to-end data transport platform delivers high signal integrity at leading-edge data speeds, addressing performance and bandwidth bottlenecks in networks, from fiber to memory. Inphi has solutions to minimize latency in computing environments and enable the rollout of next-generation communications infrastructure.
The need for high-speed optical components is increasing meaningfully from cloud customers and new 5G mobile networks. Inphi is in the midst of launching disruptive solutions that could give the company a strong competitive advantage for the next two to three years.
The Jefferies price target is $150, above the $148.31 consensus target. Inphi stock closed at $121.03 per share on Thursday.
This sector leader made a huge purchase last year that is proving to be a solid tailwind for the company. Nvidia Corp. (NASDAQ: NVDA), a company that rarely has grown through acquisitions, bought Mellanox and paid a whopping $6.9 billion in cash.
In what actually was somewhat of a duel, Nvidia knocked out Intel in its bid to buy the chipmaker, and the deal has helped Nvidia boost its business of making data center chips that help power cloud computing.
Mellanox’s BlueField intelligent network adapters are another version of data center co-processing acceleration. Top Wall Street analysts see the combination of Nvidia and Mellanox as a definite threat to Intel’s data center CPU dominance of workloads.
Nvidia recently outlined a $100 billion total addressable market for its data center business by 2024, or twice the $50 billion outlined at its last investor day. The upside includes $20 billion from core Mellanox networking, $10 billion from new class of data processing units and another $10 billion from the emerging edge AI EGX computing platform.
Together, Nvidia’s computing platform and Mellanox’s interconnects power over 250 of the world’s Top 500 supercomputers and have as customers every major cloud service provider and computer maker.
The massive $680 Jefferies price objective for Nvidia stock compares to the consensus figure of $571.37 and the most recent close at $558.80 a share.
As noted above, it is still possible that the company is in talks to be acquired by AMD. Xilinx Inc. (NASDAQ: XLNX) is a leading fabless supplier of high-density programmable logic devices (PLDs), which are standard integrated circuits that offer significant advantages over custom logic chips, such as application-specific integrated circuits. They are used extensively in key end markets such as communications.
The company’s programmable devices comprise integrated circuits (ICs) in the form of PLDs, such as programmable system on chips and three-dimensional ICs; adaptive compute acceleration platform; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken, and peripheral component interconnect express interfaces, as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity, and market-specific IP cores.
Xilinx also offers development boards; development kits, including hardware, design tools, IP and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays.
Jefferies has set a $139 price target. The consensus target is $110.17, and the last Xilinx stock trade on Thursday hit the tape at $118.23.
The semiconductor segment has had a massive run over the past couple of years, and it makes sense for aggressive investors to scale in capital now in front of not only third-quarter earnings but also an upcoming election that could toss a ton of volatility into markets.
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