Wedbush Offers 4 Semiconductor Stocks To Watch Ahead Of Next Week's Earnings

In a report published Friday, Wedbush analyst Betsy Van Hees offered brief earnings previews for four semiconductor names ahead of quarterly reports: Atmel Corporation (NASDAQ: ATML), Integrated Device Technology Inc (NASDAQ: IDTI), ON Semiconductor Corp (NASDAQ: ON) and NVIDIA Corporation (NASDAQ: NVDA).

Atmel: Q1 Expected To Be In-Line, Q2 Guidance Expected Below Street Estimates

Atmel will report its first quarter results on Wednesday after market close. The analyst is expecting a "largely" in-line first quarter print and mark an "inflection" quarter as the company is poised to benefit in the second half of the year from growth opportunities in crypto security, automotive touch and core MCUS.

However, Van Hees is expecting the company's second quarter guidance to fall short of Street estimates, but the miss may already be priced-in but only investors with a higher risk/reward tolerance should buy shares.

Shares remain Outperform rated with an unchanged $10 price target.

Integrated Devices: Strength In DDR4 Will Offset ‘Muted' Wireless Infrastructure Demand

Integrated Devices will report its fourth quarter results on Monday after market close. The analyst is expecting an in-line print as strength in DDR4 is likely to offset the "challenging" wireless infrastructure environment, coupled with an also "challenging" PC environment.

As a result, Van Hees continues to express concern for continued substantial quarter-over-quarter growth in the bottom half of 2015 given uncertain adoption rates and the increasing competitive landscape.

Shares remain Neutral rated with a price target lowered to $20 from a previous $21.

ON Semiconductor: Currency Fluctuations A Concern

ON Semiconductor will report its first quarter results on Monday before market open. The analyst is expecting an in-line result, but the company's second quarter guidance is likely to fall short of Street estimates.

Van Hees cited continued currency fluctuations as a headwind to revenue while the company will also be impacted by a PC "inventory flush" of Windows 8.1 ahead of the Windows 10 launch.

However, the company stands to benefit in the bottom half of 2015 from sustained profitability in SSG, strong revenue growth opportunities from Aptina, Automotive and wireless charging, a disciplined spending and "healthy" capital deployments.

Shares remain Outperform rated with a price target lowered to $15 from a previous $16.

NVIDIA: Continued Market Share Gains Expected

Nvidia will report its first quarter results on Thursday after market close. The analyst is expecting the company to report an in-line print driven by demand from PC gaming, data center and continued market share. However, the company is likely to report guidance short of Street expectations due to industry-wide headwinds in the PC supply chain and "rapid" changes in currencies.

However, the analyst stated Nvidia's "impressive transformation in the late innings" will ensure shares trade near its 52-week highs until the ITC will hear its patent infringement claims against QUALCOMM, Inc. (NASDAQ: QCOM) and Samsung Electronics Co Ltd.

Shares remain Outperform rated with an unchanged $25 price target.