Among other less interesting things, 2020 will go down as the year 5G mobility becomes available to the public. U.S. Telecom’s Next-Gen network set up a new smartphone upgrade cycle to take advantage of high-performance mobile service, launched nationwide. But 5G is just rolling. Getting there is 4G for 5G coverage will take years, and network infrastructure improvements never end. For that, we think Ansis (Nasdaq: ANSS), Micron technology (Nasdaq: MU), And In innovation (NYSE: ONTO) The last week of 2020 is worth your attention.
Modern engineering bets on 5G and high-end computing
Nicolas Rosolillo (ANCIS): I am leaving this month with new-to-stock for my 5G bit-3D engineering design software provider ANSIS. The company develops software software design tools for engineers, assisting in the design and simulation of systems and materials. In a world where technology is becoming increasingly complex, ANCIS is seeing a huge demand for its services.
Image Source: Getty Images.
Why this 5G stock? Many uses for its engineering software software include 5G hardware and network design, from the design of chips, which generate and receive mobile radio signals, to the antenna systems and infrastructure needed to build 5G networks. Paired with its other capabilities for a variety of industries, I love this ever-growing engineering game in the new digital-first era.
Granted, 5G is not the highest growth name in the world. Due to the epidemic breakdown, only 3% of revenue was generated in the first nine months of the year. Adjusted net income is 12% lower than in the first nine months of 2019. However, things are in search of Anse. In the middle phase of the guidance, during the last quarter of 2020, earnings per share and adjusted earnings will increase by 15% and 12%, respectively.
Granted, some of that growth is due to acquisitions. ANCIS withdrew the design peer Lumical in March and recently announced that it would buy analytics graphics, an aerospace, defense and telecom simulation software company, for 700 700 million. He expects the latest deal to be completed before the end of the year. But there’s another reason I like Anisis. The company regularly acquires small software techno pe peers, and is able to fund its costs with an incredibly high profit margin. In less than a year, ANSIS has earned an operating operating profit margin of 27% over the last 12 months.
The equivalent of અને 45 million in cash and ale and a debt of just $ 424 million at the end of September adds to my conspiracy. The future looks brighter for Ance as it helps its customers to design 5G and other cutting edges. As the year approaches I will make a small initial purchase (less than 1% of the value of my portfolio).
Memory hungry 5G phones are great for chip makers
Anders Byland (Micron Technology): Advanced 5G networking technology requires more memory in the next pay generation of smartphones. Micron Technology, the only pure-play memory chip supplier on the American stock market today, is poised to benefit greatly from these technological advances.
You don’t have to take my word for it. Micro boosted its first-quarter earnings and earnings guidance earlier this week. In a related conference call, CEO Sanjay Mehrotra said the surprising strength of the quarter has rested on solid memory sales in the data center market, but the picture is changing as it waits for the next few years.
“It’s not just about the data center. Mobile, see 5G.” “Next year, calendar year 2021, is expected to sell nearly half a billion smartphones that should have 5G. 5G runs more drums and more NND content. So our end markets are diverse, and we’ll see long-term growth. In all our end markets Trends. “
The rise in the guide led Micron’s share price to a fresh multi-year high. When I say multi-year, I mean you have to go back to the dot-com boom to find the highest price on Micron’s stock. Even so, owning one is still beyond the reach of the average person. Unit prices are rising in the volatile DRAM market amid strong demand from smartphones, data centers, connected cars and artificial intelligence & markets. Many analysts expect the uptrend to continue at least during the calendar year 2021.
Micron’s stock chart memory chip follows price trends, and the current boom should be on the foot for a while. Memory-hungry 5G phones are an important ingredient in Micron’s recipe for long-term growth today.
A small-cap in semiconductor equipment manufacturing with head growth prospects
Billy Duberstein (Innovation): Semiconductor is an under-the-radar name in the equipment industry In innovation (NYSE: ONTO). Unaware of the company? That may be because Onto was only created in 2019, when it merged with Nanometrics Inc. or Rudolf Technologies. The merger created a company with state-of-the-art metrology equipment as well as specialized equipment and advanced packaging equipment.
As next-generation 5G processors and high-performance computing technologies take hold in the next decade, more pressure will be on semiconductor manufacturers to create smaller, more powerful chips. However, as smaller and more ganse become packed chips, they become more difficult to manufacture, and control of the manufacturer’s process needs to be tightened. That’s where Ntonto’s advanced metrology solutions come in handy. TSMC (NYSE: TSM), Intel (Nasdaq: INTC), And all major memory manufacturers. To date, revenue from Onto’s Metrology Equipment has increased by 37%.
Advanced packaging accounts for another 39% of revenue, and is also geared towards strong growth. According to the VLSI Advanced Packaging forecast, sensors and advanced packaging wafers are expected to grow at an average annual growth rate of 19% by 2023. The remaining 24% of Nto’s revenue comes from software and services, which should grow with Onto’s installed support. .
It also has a sterling balance sheet of about 3 40,340 million in cash and no, and it trades on a very reasonable 18-point 2021 earnings estimate, just below its major competitor. KLA Corporation (Nasdaq: KLAK)Is, which trades around 21 times the revenue estimate next year.
While the stock has been making good moves in recent months, its fair valuation, generating strong cash flow, and exposure to the high growth trend in 5G and high performance computing are worth buying in December.
