Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at AMD (NASDAQ:AMD), and the best and worst performers in the processors and graphics chips group.
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 5 processors and graphics chips stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 3.02%, while on average next quarter revenue guidance was 2.54% above consensus. Tech stocks have had a rocky start in 2022 and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share price declining 11.6% since earnings, on average.
Best Q3: 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 $4.31 billion, up 53.9% year on year, beating analyst expectations by 4.85%. It was a stunning quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter above analyst estimates.
“AMD had another record quarter as revenue grew 54% and operating income doubled year-over-year,” said AMD president and CEO Dr. Lisa Su.
AMD achieved the fastest revenue growth of the whole group. The stock is down 2.07% since the results and currently trades at $120.38.
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
NVIDIA reported revenues of $7.1 billion, up 50.2% year on year, beating analyst expectations by 4.25%. It was an impressive quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
The stock is down 19.2% since the results and currently trades at $236.25.
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Slowest Q3: Broadcom (NASDAQ:AVGO)
Originally the semiconductor division of Hewlett Packard, and its today’s form a result of a series of mergers and acquisitions, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate that spans wireless, networking, data storage, and industrial end markets along with an infrastructure software business focused on mainframes and cybersecurity.
Broadcom reported revenues of $7.4 billion, up 14.5% year on year, in line with analyst expectations. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but a slow revenue growth.
The stock is down 6.41% since the results and currently trades at $546.
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 $1.25 billion, up 18.3% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in inventory levels but an underwhelming revenue guidance for the next quarter.
Qorvo had the weakest performance against analyst estimates among the peers. The stock is down 23% since the results and currently trades at $137.15.
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 $19.1 billion, up 4.68% year on year, beating analyst expectations by 5.02%. It was a solid quarter for the company with revenue guidance for the next quarter above analyst estimates.
Intel scored the strongest analyst estimates beat but had the slowest revenue growth among the peers. The stock is down 7.07% since the results and currently trades at $52.04.
The author has no position in any of the stocks mentioned