OmniVision Technologies Popped: What You Need to Know

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: Camera chip designer OmniVision Technologies (Nasdaq: OVTI  ) is soaring today, with shares up more than 10.5% in heavy trading on heavy volume.

So what: OmniVision blew estimates right out of the water in last night's second-quarter report. Leadership in the suddenly red-hot back side illumination sensor technology has made OmniVision chips a must-have feature in everything from laptops to smartphones, and the success is showing in the company's sales and profits.

Now what: This company took a huge risk in pushing forward with BSI technology when Sony (NYSE: SNE  ) , Panasonic (NYSE: PC  ) , and everyone else had walked away from an expensive manufacturing method. It's paying off in spades now, and OmniVision is left defending a large moat with unmatched manufacturing expertise and experience. New camera technologies are always on the horizon, but this looks like OmniVision's time to dance alone in the spotlight.

Interested in more info on OmniVision? Add it to your watchlist.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.


Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 01, 2010, at 12:44 PM, russfischer1013 wrote:

    That's the shortest article that captures the essence of what is going on with Omnivision that I have read.

    The current BSI technology is what will capture most of the non captive market share. Then BSI-2 will come along on 300mm wafers and 65nm technology thus cutting the cost of these parts in half and doubling gross margins.

    Omnivision is truly an amazing story.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1385471, ~/Articles/ArticleHandler.aspx, 9/20/2014 6:24:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement