October 29, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of linear and mixed-signal chip designer Maxim Integrated Products (Nasdaq: MXIM ) are soaring today as high as 13.2% above last night's closing price.
So what: It's another beat-and-raise performance in Maxim's just-reported first quarter. GAAP earnings tripled year over year amid steady demand and a handful of new product releases, with some help from a generous share buyback program in recent quarters.
Now what: Hesitant reports from a few chip makers clearly don't translate into doom and gloom for the whole industry. With that in mind, consider that Maxim is a fine business but still tends to sport narrower margins than major competitors Analog Devices (NYSE: ADI ) and National Semiconductor (NYSE: NSM ) . If Maxim is doing well in this market despite not being quite the best-of-breed competitor, it stands to reason that its superiors should be doing even better.
Interested in more info on Maxim? Add it to your watchlist by clicking here.