The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Intel (NASDAQ: INTC) and the rest of the processors and graphics chips stocks fared in Q4.
The biggest demand drivers for processors (CPUs) and graphics chips at the moment are secular trends related to 5G and Internet of Things, autonomous driving, and high performance computing in the data center space, specifically around AI and machine learning. Like all semiconductor companies, digital chip makers exhibit a degree of cyclicality, driven by supply and demand imbalances and exposure to PC and Smartphone product cycles.
The 8 processors and graphics chips stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
While some processors and graphics chips stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
Intel (NASDAQ: INTC)
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Intel reported revenues of $14.26 billion, down 7.4% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
“The fourth quarter was a positive step forward as we delivered revenue, gross margin and EPS above our guidance,” said Michelle Johnston Holthaus, interim co-CEO of Intel and CEO of Intel Products.
The stock is up 16.8% since reporting and currently trades at $23.46.
Is now the time to buy Intel? Access our full analysis of the earnings results here, it’s free.
Best Q4: Qualcomm (NASDAQ: QCOM)
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ: QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Qualcomm reported revenues of $11.67 billion, up 17.5% year on year, outperforming analysts’ expectations by 6.7%. The business had an exceptional quarter with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
Qualcomm delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 10.4% since reporting. It currently trades at $157.64.
Is now the time to buy Qualcomm? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Lattice Semiconductor (NASDAQ: LSCC)
A global leader in its category, Lattice Semiconductor (NASDAQ: LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Lattice Semiconductor reported revenues of $117.4 million, down 31.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Lattice Semiconductor delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 8.2% since the results and currently trades at $58.85.
Read our full analysis of Lattice Semiconductor’s results here.
Qorvo (NASDAQ: QRVO)
Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.
Qorvo reported revenues of $916.3 million, down 14.7% year on year. This print surpassed analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 14.9% since reporting and currently trades at $73.03.
Read our full, actionable report on Qorvo here, it’s free.
Allegro MicroSystems (NASDAQ: ALGM)
The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ: ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.
Allegro MicroSystems reported revenues of $177.9 million, down 30.2% year on year. This result topped analysts’ expectations by 1.4%. It was a strong quarter as it also put up a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 11.3% since reporting and currently trades at $25.45.
Read our full, actionable report on Allegro MicroSystems here, it’s free.
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