Why Cypress Semiconductor Corp. Gained 18% in May

The May surge rested on a great late-April earnings report that came with too much news to be digested quickly, plus a sector-wide interest surge in automotive computing.

Anders Bylund - The Motley Fool, Jun. 14, 2016 – 

What: Shares of Cypress Semiconductor (NASDAQ:CY) rose 17.7% in May, according to data from S&P Global Market Intelligence. Fresh off a strong first-quarter report at the end of April, the company basked in delayed investor reactions and plenty of positive developments around its most important target markets.

So what: Cypress more than doubled its first-quarter sales year over year, albeit mostly because of the merger with memory-chip specialist Spansion in the late spring of 2015. Earnings swung from a sizable loss to a modest net profit, near the top end of management's guidance range. Alongside this report, longtime CEO T.J. Rodgers announced his retirement and the company bought Broadcom 's (NASDAQ:AVGO) Internet of Things products in a $550 million all-cash deal.

That's a lot of important news for Cypress investors to chew on. I can't blame them for taking some time to fully digest what's going on here.

 Back