Monolithic Power Systems
NvidiaTwo more chip players that could be attractive takeover targets are Nvidia ( NVDA), Advanced Micro Devices (AMD). These two don't fall into the analog department, but they both are huge revenue-generators and big players in their respective markets. Nvidia, a provider of visual computing technologies and the inventor of the graphic processing unit, is especially attractive because the company is sitting on a pile of $2.49 billion in cash with only $23 million in debt. Shares of Nvidia have been beaten down in the last couple of months, falling from $26 to its current price of $17.58 a share. The trade here with Nvidia is simple: buy the stock now and use a mental stop at just below $17 a share. I am picking $17 because the stock has a ton of support at that level. Nvidia shows up on recent lists of the 10 Best-Performing Nasdaq Stocks of 2011 and 40 Stocks Analysts Are Insanely Bullish About. Advanced Micro Devices Advanced Micro Devices, global semiconductor company, is a cheap stock trading at a trailing price-to-earnings of 12.67 and a forward price-to-earnings of 10.96. Any company that wants to compete with Intel could easily come in here and make a bid for AMD and instantly capture a nice chunk of market share. In fact, I personally believe the only way AMD survives going forward is by getting bought out. The stock is also heavily shorted with the current short interest as a percentage of the float at 11%. AMD has a ton of previous support at around $8 to $7.90 a share, so I would get long now and use that as a mental stop. The bottom line: Let any of these names that have spiked already cool off a bit before jumping in. Any that haven't spiked yet could be offering up great buying entry points. I like the chances of all of these names trending higher in the next six to 12 months. Plus, some could experience big short squeezes. I am offering these stocks up as trading ideas, so cut losses quick if they don't start moving, and let the winners run if they do. To see more potential semiconductor takeover plays, including Fairchild Semiconductor ( FCS), ON Semiconductor ( ONNN) and Semtech ( SMTC), check out the Semiconductor Takeover Stocks portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
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