Core Insights - The back-to-school and college shopping season in the U.S. is experiencing a significant increase in early shopping, with 67% of shoppers starting their purchases by early July, up from 55% last year, marking the highest level since 2018 [1][2] Spending Trends - K-12 shoppers have an average budget of $295.81 for electronics, totaling $13.5 billion, $249.36 for clothing and accessories ($11.4 billion), $143.77 for school supplies ($6.6 billion), and $169.13 for shoes ($7.8 billion [3] - College students and parents are expected to spend an average of $309.50 on electronics ($20.7 billion), $191.39 on dorm furnishings ($12.28 billion), $166.07 on clothing and accessories ($11.1 billion), $140.24 on food ($9.4 billion), and $117.95 on shoes ($7.9 billion) [4] Company Insights - Costco Wholesale (COST) operates membership warehouses selling food and general merchandise at discounted prices, holding a Zacks Rank of 3 (Hold) and a VGM Score of B [5] - Lowe's Companies (LOW) is a leading home improvement retailer with a Zacks Rank of 3 and an upbeat VGM Score of A, offering essentials for back-to-campus needs [6] - Ambarella (AMBA) develops semiconductors for video compression and image processing, holding a Zacks Rank of 3 [7] - Amazon.com (AMZN) is a major e-commerce provider with a Zacks Rank of 3 [8] ETF Insights - ProShares Online Retail ETF (ONLN) tracks online retailers and charges 58 bps in fees with a yield of 0.65% annually [9] - VanEck Retail ETF (RTH) tracks the performance of various retail companies and charges 35 bps in fees with a yield of 0.70% annually [10][11] - Invesco Food & Beverage ETF (PBJ) focuses on U.S. food and beverage companies, charging 62 bps in fees with a yield of 1.68% annually [12] - VanEck Semiconductor ETF (SMH) tracks semiconductor companies and charges 35 bps in fees with a yield of 0.37% annually [13]

Core Insights - United Microelectronics Corporation (UMC) has strengthened its position in the global semiconductor landscape, becoming a reliable foundry partner amid the rise of advanced technologies [1] - The company has differentiated itself by focusing on mature and specialty process nodes, successfully navigating geopolitical tensions and supply chain disruptions [2] - UMC's stock has increased by 15.3% year-to-date, despite a disappointing performance in the April quarter, where it reported earnings of 9 cents per share, missing estimates [3][4] Financial Performance - UMC's revenue and earnings miss in the last quarter was attributed to a one-time price adjustment, along with depreciation and high capital expenditures [4] - Zacks estimates a negative earnings growth rate of 8.62% for the current year, but anticipates an 11.32% growth next year [5][7] - The company has outperformed its peers, with a 30.8% increase over the past six months compared to 8.5% growth in its peer group [5] Operational Highlights - UMC's foundries in Taiwan, Singapore, and Japan operated at healthy utilization rates in 2025, driven by demand in automotive electronics and industrial applications [2][7] - The company's strategic alignment and global diversification are increasingly valued in the current market [6]

Core Insights - SkyWater Technology (SKYT) achieved a significant turnaround in profitability in Q1 2025, with non-GAAP gross profit increasing to $14.8 million from $13.4 million, resulting in a gross margin of 24.2%, a 730-basis-point improvement year over year [2][10] - The launch of ThermaView in January 2025 has driven a 70% sequential increase in Wafer Services revenues, reaching $7.5 million, indicating a shift in SkyWater's product mix towards new offerings [3][10] - Management anticipates continued growth in Wafer Services throughout 2025, supported by customer ramps and a growing innovation pipeline, alongside the recent acquisition of Fab 25 to expand manufacturing capacity [4][10] Financial Performance - SkyWater expects both GAAP and non-GAAP gross margins to remain in the 23%-27% range for the full year 2025, with potential for further upside due to improved cost control and a more disciplined tools mix [5][10] - The Zacks Consensus Estimate for 2025 revenues is projected at $307.15 million, reflecting a 10.26% decline from 2024, while the estimated loss is pegged at 1 cent per share, indicating a sharp decline of 116.67% year-over-year [12] Competitive Landscape - GlobalFoundries (GFS) reported $1.6 billion in Q1 2025, significantly outpacing SkyWater, with strengths in strategic partnerships and AI-related semiconductor manufacturing [6] - ON Semiconductor (ON) focuses on intelligent power and sensing solutions, leveraging a vertically integrated model that provides cost advantages, particularly in the growing EV market [7] Share Price and Valuation - SkyWater shares have declined 23.3% year to date, contrasting with a 7% return in the broader Zacks Computer and Technology sector and a 13.4% rise in the Electronics – Semiconductors industry [8] - Currently, SkyWater is trading at a forward 12-month Price/Sales ratio of 1.48X compared to the industry's 8.6X, with a Value Score of B [11]

Core Insights - Qualcomm Incorporated (QCOM) has gained 28.2% in three months, underperforming the Electronics – Semiconductors industry's growth of 69.3% but outperforming the S&P 500 [1][8] - The company has underperformed its competitor Broadcom Inc. (AVGO), which surged 86.8%, while outperforming Intel Corporation (INTC), which gained 12.3% [2][8] Product Performance - Qualcomm is experiencing strong demand in the premium smartphone segment, particularly with the Snapdragon 8 Elite chipset, which features a peak CPU speed of 4.32 GHz and advanced graphics performance [3][4] - The Snapdragon 8 Elite is integrated into flagship smartphones from major manufacturers like Samsung, Xiaomi, and OnePlus, enhancing Qualcomm's market presence [4] - Qualcomm is also expanding its portfolio for the mid-range smartphone segment with the Snapdragon 7 Gen 4 chipsets, which have been adopted by brands like HONOR and VIVO [5] Revenue Growth - The company reported revenues of $6.93 billion in Q1 2025, reflecting a 12% year-over-year increase, with projected handset revenues reaching $27.6 billion in 2025, indicating an 11.3% year-over-year growth [5] - Qualcomm is focusing on developing advanced chipsets for AI PCs, with the Snapdragon X chip gaining popularity in the emerging market [6] Competitive Landscape - Qualcomm faces increasing competition from low-cost chip manufacturers like MediaTek and Rockchip in the mid-range smartphone segment [9] - Major clients like Apple and Samsung are moving towards in-house chip development, which poses a challenge to Qualcomm's market share [9][10] - Intel remains a strong competitor in the AI PC market, with several manufacturers opting for Intel AI chips, which could impact Qualcomm's AI PC chipset business [10] Market Exposure - A significant portion of Qualcomm's revenues comes from international markets, particularly China, which poses risks due to geopolitical tensions and trade relations [11] Earnings Estimates - Earnings estimates for 2025 have decreased by 0.17% to $11.71, and for 2026, they have decreased by 2.23% to $11.82, indicating bearish sentiments among investors [12] Valuation Metrics - Qualcomm's shares are trading at a price/earnings ratio of 13.77, which is lower than the industry average of 32.87 and the stock's historical mean of 17.22, suggesting a relatively cheaper valuation [15] Business Model Strengths - The strength of Qualcomm's business model, revenue diversification, and proactive market response are key growth drivers, supported by a strong focus on innovation and collaboration with OEMs [17]

Core Insights - SkyWater Technology (SKYT) shares are currently undervalued with a Value Score of B and a forward 12-month price/sales (P/S) ratio of 1.4X, significantly lower than the industry average of 8.5X [1][7] - The company has seen a strong performance in its newly launched ThermaView platform, which contributed to a 70% quarter-over-quarter increase in Wafer Services revenues, reaching $7.5 million in Q1 2025 [9][11] - The acquisition of Fab 25 enhances SkyWater's foundry capabilities, adding 400,000 wafer starts annually and generating over $1 billion in contracts, which is expected to boost revenues and cash flow immediately [13][14] Financial Performance - SkyWater's stock has outperformed the broader Zacks Computer and Technology sector, with an 11.9% increase over the past month compared to the sector's 6% and the industry's 7.1% growth [9] - For 2025, SkyWater expects a revenue growth range of 5% for combined Advanced Technology Services (ATS) and Wafer Services, with a consensus estimate of $307.15 million, indicating a 10.26% decline from 2024 [18] - The company anticipates second-quarter 2025 revenues between $55-$60 million, with ATS revenues projected at $49-$53 million, reflecting a 38.6% decline from the previous year [19] Market Position and Growth Drivers - The ThermaView platform is positioned in the growing advanced thermal imaging market, projected to reach $9 billion by 2027, indicating long-term growth potential across various sectors [11] - SkyWater's focus on quantum computing is significant, with over 90% of its advanced computing revenues in 2024 related to quantum technology development [15] - The company maintains a Zacks Rank 1 (Strong Buy) and a Growth Score of A, indicating a strong investment opportunity [22]

Core Insights - SkyWater Technology (SKYT) shares have increased by 22.6% in the past month, outperforming the Zacks Computer and Technology sector and the S&P 500 index, which returned 7.6% and 4.9% respectively [1][2] Strategic Developments - The stock's performance is largely due to SkyWater's acquisition of Infineon's Fab 25, a 200 millimetre foundry in Austin, TX, which is expected to close mid-year and enhance domestic semiconductor capacity [2][3] - The acquisition is supported by a four-year, over $1 billion supply deal, which will immediately increase revenues and cash flow, diversify revenues, and strengthen the company's role in U.S. semiconductor onshoring [3][4] Product Launch and Revenue Growth - SkyWater launched ThermaView Solutions in January 2025, aimed at high-performance thermal imaging applications, which has already driven a 70% sequential increase in Wafer Services revenues to $7.5 million in Q1 2025 [7][8] - Over half of Wafer Services' revenues in Q1 2025 came from new products, marking a significant shift from 2024 when 90% of revenues were from legacy products [8][10] Quantum Computing Advancements - SkyWater's partnership with D-Wave has led to significant advancements in quantum computing, with D-Wave achieving quantum supremacy, validating SkyWater's role in U.S.-based quantum innovation [11][12] - Quantum computing has become the second-largest end market for SkyWater, with over 90% of advanced compute revenues tied to quantum programs [13] Competitive Positioning - SkyWater differentiates itself from competitors like Tower Semiconductor, GlobalFoundries, and ON Semiconductor by focusing on specialized, high-value chip production and holding a Department of Defense accreditation [14][15] - The company's TaaS model supports early design-for-manufacturability and quality-focused production, allowing for rapid innovation [16] Financial Outlook - The Zacks Consensus Estimate for SKYT's 2025 loss is currently at 1 cent per share, indicating a year-over-year decline of 116.67%, with revenues estimated at $307.15 million, a decline of 10.26% [17] - SKYT has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 203.9% [18] Valuation Metrics - SKYT trades at a forward 12-month P/S ratio of 1.28X, significantly lower than the industry average of 7.90X, making it an attractive option for value investors [19] Investment Consideration - SkyWater's unique position as a U.S.-based, DoD-accredited foundry, along with strong momentum in its Wafer Services segment and critical role in quantum computing, presents a compelling long-term investment opportunity [21][22]

Core Viewpoint - Marvell Technology, Inc. is expected to report strong fiscal first-quarter results for 2026, with significant revenue and earnings growth driven by its data center and AI-related products [1][2][5]. Revenue Expectations - The company anticipates revenues of $1.875 billion for the first quarter, reflecting a year-over-year growth of 61.6% [1]. - The Zacks Consensus Estimate for revenues is set at $1.88 billion [1]. - Data center revenues are projected to reach $1.395 billion, indicating a sequential growth of 2.1% [5]. Earnings Projections - Marvell expects non-GAAP earnings of 61 cents per share, which represents a 154.2% increase year over year [2]. - The consensus estimate for earnings has remained stable over the past 60 days [2]. Segment Performance - The data center division is the primary growth driver, benefiting from increased demand for electro-optics products and AI silicon [5][6]. - Networking and Carrier segments are rebounding, with projected sequential revenue increases of 8.1% and 9%, reaching $114.4 million and $186.9 million, respectively [7][8]. - Automotive and Industrial divisions are also contributing positively, with estimated revenues of $88.9 million, reflecting a 3.7% sequential improvement [9]. Market Challenges - The consumer end market remains a weak spot due to seasonality in gaming and macroeconomic uncertainties [10]. - Marvell generates approximately 43% of its fiscal 2025 total revenues from the Chinese market, raising concerns amid geopolitical tensions [19][20]. Investment Considerations - Marvell's custom silicon business is positioned as a key player in the data center market, particularly for AI applications [15]. - Collaborations with industry leaders like NVIDIA and Juniper Networks enhance Marvell's capabilities in high-speed networking technology [16][18]. - Despite challenges, the recent U.S.-China agreement to reduce tariffs may provide short-term relief for Marvell's business [20]. Stock Performance and Valuation - MRVL shares have declined by 20.9% over the past year, underperforming the industry growth of 14.1% [11]. - The stock trades at a forward price-to-sales multiple of 5.99X, which is lower than the industry average of 7.54X, indicating a potential investment opportunity [12]. Conclusion - The upcoming quarterly results are anticipated to mark the beginning of a multi-year growth trajectory for Marvell, driven by AI innovation, despite ongoing trade tensions [21].

Industry Overview - The Zacks Electronics - Semiconductors industry is experiencing growth driven by the proliferation of AI, Generative AI, IoT, and industrial revolution 4.0, benefiting companies like Broadcom, Lam Research, and Impinj [1] - The industry is facing challenges such as macroeconomic factors, end-market volatility, inventory corrections, and geopolitical tensions, particularly tariffs affecting trade with China [1] Demand Drivers - Increasing demand for AI-supportive chips from hyperscalers is a significant growth driver, alongside the rising need for consumer electronic devices like smartphones and robotics [1] - The demand for advanced manufacturing processes and energy-efficient computing power is being fueled by the growing popularity of AI and the emergence of Gen AI and Agentic AI [3] - Smart devices require high processing power and low power consumption, which is beneficial for the semiconductor industry [4] Advanced Packaging and Manufacturing - The demand for advanced semiconductor packaging and test technologies is rising due to trends towards miniaturization and improved performance [5] - The complexity of semiconductor manufacturing processes is increasing as manufacturers aim to maximize yields at lower costs, driven by the adoption of cloud computing, IoT, and AI [6] Market Performance - The Zacks Electronics - Semiconductors industry ranks 85, placing it in the top 35% of over 250 Zacks industries, indicating bullish near-term prospects [7][8] - The industry's earnings estimates have increased by 3.5% since August 31, 2024, reflecting positive analyst sentiment [9] - Over the past year, the industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, appreciating 17.7% compared to 10.9% for the S&P 500 [11] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings ratio of 28.75X, higher than the S&P 500's 21.49X and the sector's 26.45X [14] Company Highlights - Impinj, with a Zacks Rank 1, is benefiting from its strong position in the endpoint IC market and innovative product offerings, with a 7.5% increase in earnings estimates for 2025 [17][19] - Broadcom, ranked 2, is seeing strong demand for AI-related solutions and has maintained steady earnings estimates for fiscal 2025 [22][23] - Lam Research, also a Zacks Rank 2, is capitalizing on strengths in 3D DRAM and advanced packaging technologies, with a 4.2% increase in earnings estimates for fiscal 2026 [26][27]

Core Viewpoint - Nova Ltd. (NVMI) has experienced a significant decline in share price, losing 27.9% over the past three months, which is notably worse than the performance of the Zacks Electronics – Semiconductors industry and broader market indices [1][2] Financial Performance - NVMI's market share has increased in the thin-film and OCD metrology segment, making it the second-largest vendor in this area, driven by strong demand in semiconductor manufacturing, particularly for AI applications [6] - The company achieved record revenues in Q1 2025, particularly from its gate-all-around and advanced packaging technologies, with notable sales from the PRISM platform [7] - NVMI's earnings estimate for 2025 is projected at $7.83 per share, reflecting a 30.07% year-over-year growth, with revenues expected to reach $863.7 million, indicating a 28.45% increase [9] Strategic Positioning - Despite new tariffs, NVMI expects only a minor reduction in gross margins by 30 to 50 basis points in Q2 2025, and there has been no significant impact on revenue growth [3][4] - The company's global manufacturing footprint, with production facilities in the U.S., Germany, and Israel, allows for quick adaptation to changing trade rules, minimizing tariff exposure [5] - NVMI is actively exploring pricing and operational changes to mitigate cost pressures on service parts, maintaining resilience in its operations [5] Growth Potential - The integration of Sentronics is expected to enhance NVMI's role in AI-driven semiconductor manufacturing, contributing to consistent quarterly growth and rising demand across key technologies [11] - The company has a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a strong investment opportunity [12]

Marvell Technology, Inc. (MRVL) is likely to beat expectations when it reports fourth-quarter fiscal 2025 results after market close on March 5.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Marvell projects total revenues for the fiscal fourth quarter of $1.8 billion (+/- 5%). The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, which indicates an increase of 26.5% from the year-ago quarter’s reported figure.MRVL anticipates non-GAAP earnings to be 59 cents per sha ...