Boston, MA 03/07/2014 (wallstreetpr) – Pixelworks, Inc. (NASDAQ:PXLW) is the latest company in technology business whose story, stock direction and almost everything else has changed or is going to change because of its relationship with Apple Inc (NASDAQ:AAPL).
For those who may not know already, Apple Inc (NASDAQ:AAPL) is the kind of company that doesn’t allow you to be talkative about the kind of relationships you are doing with it. But there are exceptions – when the government is involved.
Such an exceptional moment came when Pixelworks, Inc. (NASDAQ:PXLW) was making its annual filing with Securities Exchange Commission (SEC). The company which makes components for video processing had no choice but to reveal that Apple Inc (NASDAQ:AAPL) is one of its large, if not important, customers.
More than 10 percent revenue from AAPL
The company revealed that in 2013, it realized more than 10 percent of its revenue from business with iPhone maker Apple Inc (NASDAQ:AAPL). That was the most that could be understood in the relationship between the companies. However, everyone else in Wall Street and everywhere else can only speculate what Apple Inc (NASDAQ:AAPL) is getting from Pixelworks, Inc. (NASDAQ:PXLW).
While it might not be very clear immediately what business Pixelworks, Inc. (NASDAQ:PXLW) and Apple Inc (NASDAQ:AAPL) are involved in, it is speculated that it might be about the technology behind the high-definition display in existing and future Apple Inc devices.
Following the surprise, yet important disclosure, shares of Pixelworks, Inc. (NASDAQ:PXLW) exploded. The shares were last seen changing hands at $9, following a huge gain of 87.5 percent. Earlier in the day, the stock had touched a new one-year high price level at $9.05.
Acquisition talks set in
Now a new twist is seen around the relationship between Pixelworks, Inc. (NASDAQ:PXLW) and Apple Inc. Some in Wall Street are convinced that Apple Inc (NASDAQ:AAPL), might at some point want to acquiring Pixelworks, Inc. (NASDAQ:PXLW). And this is what must be powering the stock now and why the stock might continue lifting.
