This blockbuster chip merger may take a while to pay off

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

Analog Devices' purchase of Maxim Integrated combines powers in the arcane analog field, but investors should be concerned about more exposure to consumer products and a long timeline to growth, writes tpoletti.

The design of analog semiconductors has been called an art in which chip designers translate the fuzzy signals from the real world — not the binary world of zeros and ones — into digital form.

Shares of ADI fell 5.8% in Monday trading, however, as some analysts believed the company was paying a very high premium and diluting its stock, while Maxim shares jumped 8.1%. The deal may not be as accretive to ADI as quickly as its previous purchase of Linear Technology, another analog player, in 2017. ADI executives told analysts on a conference call Monday that it is on a path to double Linear’s historical revenue growth.

“Looking broadly at the market, we continue to see a decline in the number of hardware engineers, while the number of software engineers grows at double-digit rates,” Roche told analysts. “As a result, our customers are increasingly relying on us for our hardware expertise.” He said that with Maxim, the combined team of over 10,000 engineers expands its breadth of technology and talent.

“It bolsters our automotive business,” Roche said. “And an area that we’ve had an interest in, but we’ve come late to, is data-center power. So we get that in a very significant way with the combination.”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

tpoletti DGee this is so weird, I was just thinking about uncle!

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves in the premarket: PepsiCo, Analog Devices, Carnival, Pfizer & moreThe stocks making the biggest moves in premarket trading include PepsiCo, Analog Devices, Carnival, Pfizer, and more. Pepsi doesn’t get much attention, need to look into it more Run and hide y’all are caught
Source: CNBC - 🏆 12. / 72 Read more »

SoftBank considering sale or IPO for Arm Holdings: WSJ - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Omg omg omg
Source: BusinessInsider - 🏆 729. / 51 Read more »