Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Applied Micro Circuits Corporation Shares Soared Today

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 Applied Micro Circuits  (NASDAQ: AMCC  ) jumped nearly 12% Tuesday following several positive analyst notes on the company.

So what: First, Canaccord's Matthew Ramsay initiated coverage on Applied Micro Circuits yesterday evening, giving the stock a buy rating and a $16 per share price target. Ramsay cited Applied Micro's first-to-market position with 64-bit ARM processors designed specifically for enterprise servers, which should result in particularly strong X-Gene chip sales over the near term as the competition strives to catch up.

In addition, Hans Mosesmann of Raymond James and Krishna Shankar of Roth Capital reiterated their respective strong buy and buy ratings for Applied Micro stock. Both analysts noted optimism surrounding the impending strength of Applied Micro's server offerings through its X-Gene efforts.

Now what: Applied Micro Circuits isn't profitable on a trailing 12-month basis, but shares look reasonably priced at about 18 times next fiscal year's estimated earnings -- especially considering that Applied Micro hopes to ride this momentum and double quarterly sales by the end of fiscal 2016. If that happens, it's safe to say patient investors would be happy they held on after today's pop.

Leaked: Apple's next smart device (warning, it may shock you)
But Applied Micro also isn't the only company poised for huge growth. In fact, Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Read/Post Comments (0) | Recommend This Article (2)

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.

Be the first one to comment on this article.

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: 2989466, ~/Articles/ArticleHandler.aspx, 8/29/2015 11:35:59 PM

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...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:59 PM
AMCC $5.77 Up +0.11 +1.94%
Applied Micro Circ… CAPS Rating: *
AAPL $113.29 Up +0.37 +0.33%
Apple CAPS Rating: ****
RJF $53.45 Down -0.24 -0.45%
Raymond James Fina… CAPS Rating: ****