Market Overview

8 Semiconductor Stocks That Could Be Acquisition Targets

8 Semiconductor Stocks That Could Be Acquisition Targets
Related CAVM
7 Stocks Moving In Thursday's After-Hours Session
Argus: 'Strong' End Markets, Cavium Acquisition Make Marvell Technology A Buy
Merger Arbitrage Mondays - June 18, 2018 (Seeking Alpha)
Related MRVL
Earnings Scheduled For May 31, 2018
The Week Ahead: Retail Earnings, CEO Conference Appearances In Focus
Merger Arbitrage Mondays - June 18, 2018 (Seeking Alpha)

Cavium Inc (NASDAQ: CAVM) and Marvell Technology Group Ltd. (NASDAQ: MRVL) both traded higher Monday after Marvell announced a $6 billion buyout of its smaller counterpart.

The new deal is just the latest in an industry that's red-hot with M&A. QUALCOMM, Inc. (NASDAQ: QCOM) was already in the process of trying to complete a deal to buy NXP Semiconductors NV (NASDAQ: NXPI) when Broadcom Ltd (NASDAQ: AVGO) stepped in and made a buyout offer for Qualcomm. Just last week, Broadcom completed its $5.5 billion takeover of Brocade Communications Systems, Inc. (NASDAQ: BRCD).

M&A announcements can provide huge upside for investors overnight, and there seems to be no signs that the consolidation cycle in semiconductors is slowing down. In fact, Broadcom management has said it plans to devote half of its free cash flow to buyouts.

Last month, Nomura analyst Romit Shah compiled a list of potential buyout targets for Broadcom, but many of the companies on his list would make excellent acquisitions for other companies as well (check out Shah's track record here). In fact, three of Shah’s potential targets were Qualcomm, Cavium and Marvell. Here’s a look at some of the others:

Latest Ratings for CAVM

Feb 2018Stifel NicolausMaintainsHoldHold
Nov 2017Loop CapitalDowngradesBuyHold
Nov 2017Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for CAVM
View the Latest Analyst Ratings

Posted-In: Nomura Romit ShahAnalyst Color Long Ideas News M&A Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (BRCD + AVGO)

View Comments and Join the Discussion!