Today's Research on Taiwan Semiconductor and Analog Devices: Semiconductor Stocks on the Roll

Feb 04, 2013, 08:00 ET from

LONDON, February 4, 2013 /PRNewswire/ --

Semiconductor industry has been a victim of PC downturn, but the situation is not dire for all the companies. Up and coming semiconductor companies, especially in the mobile segment, are thriving well. These companies are able to grow on the back of rising demand for mobile phones and tablets. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) reported its quarterly results and grew its revenue 31 percent on year-over-year basis. It also increased its gross margin by 2.5 percent. Analog Devices Inc. (NASDAQ: ADI) is expected to report its earnings in mid-February. However, it is likely to follow the trend and report healthy numbers. StockCall analysts have recently posted two free technical analysis reports on the industry covering Taiwan Semiconductor and Analog Devices. Sign up now to access them:    

Taiwan Semiconductor Clinches Apple Deal

Taiwan Semiconductor Manufacturing Co. Ltd. returned over 20 percent gain in 2012 and has been performing well since then. While analysts are slashing their estimates for iPhone sales, Taiwan Semiconductor is likely to benefit from its latest collaboration with Apple. The company scored a big win as it managed to replace Samsung to become Apple's production partner for A6X chips. After being entrusted with the production of A6X chips, it is expected that the company would be able to grab the deal for A7 chips as well, as and when it comes to fructification. Register today and download the free report on Taiwan Semiconductor Manufacturing at

The move also shows strategic changes taking place in the company, as Taiwan Semiconductor had earlier been reluctant to tie a big portion of its capacity with just one client. It had also been aggressively pursued by Qualcomm. Another notable change for the company is its shift towards more innovation. Taiwan Semiconductor is now looking to focus on providing technological advanced products. It is a big change from its previous focus on scaling up volumes.

Apart from providing good returns in the stock market, Taiwan Semiconductor is also doing well with regard to its financial numbers as it consistently grows its revenue and earnings. The stock is trading at P/E ratio of a little over 17 and is below industry average of 20. At this point, the stock does not seem to have priced the impact of its Apple deal fully. Taiwan Semiconductor also offers dividend yield of 2.8 percent, making this stock even more attractive.

Analog Devices Makes New 52-Week High

Analog Devices Inc. is currently on a bull-run and the stock is touching a 52-week high. The company draws most of its revenue from its Amplifiers division and converters. Unlike Taiwan Semiconductor, Analog Devices has a wide customer-base and thus is better placed to withstand the loss of clients. The company has solid earnings per share, accompanied with strong free cash flow situation. Read the free analysis on Analog Devices by registering today at  

Analog Devices offers 2.72 percent dividend yield, which is more or less in-line with its peers. However, the company boasts of considerably higher net margins when compared with its competitors like STMicroelectronics and Texas Instruments. Analog's net margin stands at about 24 percent while Texas Instruments' margin is at 13 percent.

Interestingly, the company CEO sold a large chunk of his holding in December, 2012, but the move may be a simple step to cash in on the recent up moves of the stock, as the company still displays strong fundamentals.

About is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at