March 6, 2012
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 OmniVision Technologies (Nasdaq: OVTI ) have jumped by as much as 10% today on hopes that the image sensor specialist may have landed a juicy spot in Apple's (Nasdaq: AAPL ) new iPad.
So what: Apple is set to host an event tomorrow to unveil the latest iteration of the tablet, which is supposed to sport an upgraded camera rumored to be either 5-megapixel or 8-megapixel. Baird has also come out with an upgrade to an "outperform" rating today on the belief that OmniVision may have won the spot. Baird analyst Tristan Gerra also believes an "iPad mini" may be in the works, and OmniVision may have won the camera spots in that device, although those sensors would be of lower quality and therefore fetch lower prices.
Now what: The idea also plays nicely with OmniVision's relatively upbeat guidance for the current quarter, as part of the strength was attributed to the company's entertainment division, which includes tablet sales. Even if OmniVision did in fact score the win, don't expect any confirmation tomorrow. Apple only touts specs, not suppliers. The real test will be once the device reaches the public's hands and it subsequently torn down to see who lurks inside, which will likely occur by month's end.
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