Business Corpus: IDT Stock Leaps On Talk Of Acquisition By Japanese ChipmakerIntegrated Device Technology shares jumped to a 17-year high on Friday on reports that Japan's Renesas Electronics is looking to buy the U.S. chipmaker. IDT stock surged 12.3% to 42.49. The post IDT Stock Leaps On Talk Of Acquisition By Japanese Chipmaker appeared first on Investor's Business Daily.

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Integrated Device Technology (IDTI) shares jumped to a 17-year high on Friday on reports that Japan's Renesas Electronics is looking to buy the U.S. chipmaker. IDT stock has been climbing since its better-than-expected fiscal first-quarter report on July 30.

IDT stock surged 12.3% to 42.49 on the stock market today. It ended the regular session Thursday up 0.3% at 37.84.

Japanese business daily Nikkei first reported the Renesas-IDT talks on Friday. Renesas is looking to pay about $6 billion for IDT to strengthen its position as a top supplier of automotive chips, Nikkei said.

San Jose, Calif.-based IDT makes communications chips used by data centers and telecom companies. It expanded into automotive chips with its purchase of German chipmaker ZMDI in 2015.

Renesas No. 2 In Automotive Chips

Renesas is the second-largest supplier of chips to the automotive market by revenue after Netherlands-based NXP Semiconductors (NXPI). Last year, Renesas bought Milpitas, Calif.-based Intersil for about $3.2 billion. That deal also was a move to beef up the automotive semiconductor business at Renesas.

Automotive chip sales are booming as carmakers incorporate advanced driver assistance systems and autonomous driving capabilities into their vehicles.

Integrated Device Technology makes mixed-signal chip systems used in communications, computing, consumer, automotive and industrial devices. IDT products include radio-frequency chips, wireless power, high performance timing and memory interface devices. It also makes smart sensors, real-time interconnect and optical interconnect components.

IDT earned an adjusted 44 cents a share on sales of $228.5 million in the quarter ended July 1. On a year-over-year basis, earnings per share rose 33% and sales rose 16%. It was the company's fourth consecutive quarter of accelerating earnings growth.

IDT Stock On MarketSmith Growth 250 List

IDT stock broke out of a double-bottom base at a buy point of 32.25 on May 22. It ranks No. 3 out of 33 stocks in IBD's Electronics-Semiconductor Fabless industry group. Leading the group are graphics-chip makers Advanced Micro Devices (AMD) and Nvidia (NVDA).

Integrated Device Technology is one of four fabless chipmakers on IBD's MarketSmith Growth 250 list of high-potential stocks. The others are AMD, Nvidia and Monolithic Power Systems (MPWR).

The Electronics-Semiconductor Fabless industry group is currently ranked No. 103 out of 197 industry groups tracked by Investor's Business Daily.

The semiconductor sector has been pressured lately by concerns about slowing growth. But some segments like automotive, memory and graphics chips have provided pockets of strength.

Chip Stocks To Watch And Semiconductor Industry News

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