Sterne Agee analyst Vijay Rakesh has given a snapshot on various semiconductor sector plays ahead. While many fundamental analysts have keyed in on fundamentals, one of Rakesh’s angles is covering higher dividends, stock buybacks and share repurchase plans as potential drivers.
On share buyback and share repurchase plans, Rakesh points to higher buybacks at companies like SanDisk Corp. (NASDAQ: SNDK), ON Semiconductor Corp. (NASDAQ: ONNN) and Skyworks Solutions Inc. (NASDAQ: SWKS). He thinks that this is potentially pointing to increased Optimism on their outlook and attractive current valuations. Nvidia Corp. (NASDAQ: NVDA) also was outlined as a potential winner with its new $750 million buyback announcement.
On the flip side, some chip companies are decreasing share repurchases, such as Analog Devices Inc. (NASDAQ: ADI) and Intel Corp. (NASDAQ: INTC). Analog Devices said that buybacks have come down significantly…
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