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Maxim Expands Product Portfolio With New PMIC MAX16923

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Maxim Integrated Products, Inc. recently unveiled a power-management integrated circuit (PMIC) - MAX16923. This PMIC will address space challenges in automotive applications and mitigate electromagnetic interference (EMI).

This new product will allow designers to increase the number of displays per vehicle by reducing solution size. This will also help it to reduce design complexity.

The new PMIC can integrate five functions into a single IC, helping designers to reduce complexity and solution size. Notably, the product can shrink space by up to 50%and lower bill-of-material costs. Additionally, the new product offers EMI mitigation, which will likely improve reliability of each display.

We believe Maxim is poised to gain traction with this new PMIC as it complies with designers’ product criteria of compactness, enhanced efficiency and reduced design complexity. Further, this new product will strengthen the company’s product portfolio.

Maxim Integrated Products, Inc. Price and Consensus

 

Market Prospects

Power management integrated circuits have been gaining significant traction, driven by increasing demand for energy-efficient devices.

Per reports, the PMIC market is expected to witness a compounded annual growth rate (CAGR) of 4.6%,and reach $56.48 billion between 2018 and 2026. Notably, the demand for PMICs is expected to be the highest in Asia Pacific, which is anticipated to witness a CAGR of 5.5% till 2026.

These circuits have been successful in making an impact across all end markets served, including portable electronic devices and automobiles. Per a research report from Allied Market Research, power management ICs in automobile are expected to record a CAGR of 6.2% between 2016 and 2022.

Growing adoption of Infotainment, and safety and driver assistance content in automotive are driving demand for PMICs. Notably, Maxim is well poised to cater to these growing needs, backed by robust product portfolio.

Bottom Line

Maxim’s automotive business has been growing lately. Notably, the automotive segment generated 27% of total revenues during first-quarter fiscal 2020. However, revenues were down 30.7% on a year-over-year basis.

The company is witnessing increasing customer wins in this segment, which is a positive. Maxim has collaborated with firms to focus on safety and other important requirements for autonomous vehicles.

The company’s expertise in Automotive Safety Integrity Levels (ASIL) remains a key catalyst. Moreover, its ASIL compliant battery management system remains a market differentiator and will help it sustain momentum in the market.

We believe Maxim’s continued innovation will enable it to provide better services to customers and in turn improve profitability.

The company is expected to announce second-quarter fiscal 2020 results on Jan 28, 2020, after market close.

Zacks Rank & Stocks to Consider

Maxim currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , Itron, Inc. (ITRI - Free Report) and Fiverr International Ltd. (FVRR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for MACOM Technology, Itron and Fiverr is currently projected at 15%, 25% and 44.2%, respectively.

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