It’s the chip merger mania that never ends!
For over two years now, I’ve chronicled the rapid consolidation underway in the chip sector.
In fact, in June 2015, I singled out seven companies in the industry as top takeover targets.
As it turns out, five of these firms have been acquired or received legitimate takeover interest.
Yet the buying frenzy is far from over!
All the fundamental drivers that initially sparked the consolidation spree remain well intact, which is why we continue to see more deals.
Case in point:
- On Nov. 19, Marvell Technology Group Ltd. (MRVL) scooped up its rival, Cavium (CAVM) for roughly $6 billion.
- A few weeks before that, Broadcom (AVGO) splashed out with a $103 billion bid for Qualcomm (QCOM) — which would be the biggest technology acquisition ever.
Given the strong consolidation trend, every investor’s portfolio should include a handful of compelling chip takeover targets that are attractive investments in their own right.
That way, you stand to profit even if a deal never materializes.
But if a deal does materialize, you stand to profit massively.
If you’re short on chip takeover candidates, here are a few worth considering: NVE Corp. (NVEC), STMicroelectronics NV (STM), Knowles Corp. (KN) and DSP Group Inc. (DSPG).
If I had to pick just one, I’d go with Resonant Inc. (RESN).
It’s positioned in one of the fastest-growing, largest ($11 billion and counting) and vital chip sectors — radio-frequency (RF) components. And the company offers a patent-protected unique technology platform that promises to increase development speeds and reduce costs.
Such a potent one-two combo makes it one of the timeliest targets for the likes of Broadcom, Skyworks (SWKS), Qorvo Inc. (QRVO) and Japan-based Murata. So don’t miss out!
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