stock jumped 4% in early trading on Tuesday, as the German chip maker raised its revenue outlook, citing stronger than expected demand for 5G phones and tablets.
chip supplier said it now expected fourth-quarter revenue to be between $436 million and $441 million—from a previous forecast in November of $380 million to $430 million.
The Frankfurt-listed chip designer said it expected the positive demand momentum to continue into the first quarter of 2021. The stock gave back some of its earlier gains, trading 1.8% up into afternoon trading.
Apple iPhone maker
Hon Hai Precision
in Taiwan, also reported strong monthly revenue on Tuesday. The Taiwanese technology giant—the exclusive assembler for the iPhone 12 Pro and iPhone Pro Max—reported revenue of NT$713.78 billion ($25.5 billion) in December, a 32% rise on the year-ago period. The stock rose 4% on Tuesday.
Dialog Semiconductor has now raised revenue guidance for the third consecutive quarter, having hiked its sales outlook in October ahead of its third-quarter results and in June ahead of the second quarter.
In October, the company said demand for headphones, fitness trackers, digital watches, and notebooks were behind the upgrade. Analysts welcomed the upgrade back then, but noted the absence of 5G smartphones as a driver of demand. However, Apple launched its first 5G iPhones in October and Dialog Semiconductor has since seen “stronger than expected” consumer demand for 5G phones.
Looking ahead. Dialog Semiconductor stock is now trading at its January 2020 pre-Covid levels and 158% higher than its March lows, partly due to the wider market recovery and also on account of its demand-driven upgrades. The German company also expects the momentum to continue into the first three months of 2021.
analysts, led by François-Xavier Bouvignies, believed the latest upgrade—taking revenue guidance 6% above the consensus—was mainly due to Apple. “We would expect that resilience in iPhone volumes, combined with stronger tablet, notebook, wearable products (we estimate non-iPhone products at c60% of sales) have driven upside,” they said, maintaining a buy rating on the stock.
Coupled with Foxconn’s positive update, Dialog Semiconductor’s upgrade suggests stronger-than-expected demand for Apple’s new range of iPhones. The long-awaited global smartphone-market recovery may finally be about to gather pace.
The post Foxconn and Dialog Semiconductor Updates Point to Strong Apple iPhone Demand appeared first on TechFans.