As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the processors and graphics chips stocks, including Allegro MicroSystems (NASDAQ:ALGM) and its peers.
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 9 processors and graphics chips stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 0.72%, while on average next quarter revenue guidance was 3.36% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but processors and graphics chips stocks held their ground better than others, with the share prices up 8.08% since the previous earnings results, on average.
Best Q4: 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 $248.8 million, up 33.3% year on year, beating analyst expectations by 1.58%. It was a very strong quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.
“Our team delivered another quarter of record results. Momentum in e-Mobility applications, including xEV and ADAS, as well as strong demand across our magnetic sensor and power IC product portfolios continues to drive growth,” said Vineet Nargolwala, President and CEO of Allegro MicroSystems.
Allegro MicroSystems achieved the fastest revenue growth of the whole group. The stock is up 29.6% since the results and currently trades at $44.61.
Is now the time to buy Allegro MicroSystems? Access our full analysis of the earnings results here, it's free.
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 $176 million, up 24.1% year on year, in line with analyst expectations. It was a solid quarter for the company, with a significant improvement in operating margin and revenue guidance for the next quarter above analysts' estimates.
The stock is up 9.12% since the results and currently trades at $90.25.
Is now the time to buy Lattice Semiconductor? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 the leading manufacturer of computer processors and graphics chips.
Intel reported revenues of $14 billion, down 31.6% year on year, missing analyst expectations by 3.67%. It was a weak quarter for the company, with declining revenue and underwhelming sales guidance for the next quarter.
Intel had the weakest performance against analyst estimates in the group. The stock is down 2.19% since the results and currently trades at $29.42.
Read our full analysis of Intel's results here.
AMD (NASDAQ:AMD)
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices or AMD (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
AMD reported revenues of $5.6 billion, up 16% year on year, beating analyst expectations by 1.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is up 25.9% since the results and currently trades at $94.65.
Read our full, actionable report on AMD here, it's free.
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 $9.46 billion, down 11.6% year on year, missing analyst expectations by 1.14%. It was a weak quarter for the company, with declining revenue and underwhelming sales guidance for the next quarter.
The stock is down 10.8% since the results and currently trades at $121.3.
Read our full, actionable report on Qualcomm here, it's free.
The author has no position in any of the stocks mentioned