Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q1 now behind us, let’s have a look at AMD (NASDAQ:AMD) 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 mixed Q1; on average, revenues beat analyst consensus estimates by 2.66%, while on average next quarter revenue guidance was 5.74% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but processors and graphics chips stocks held their ground better than others, with the share prices up 13.2% since the previous earnings results, on average.
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 $5.35 billion, down 9.07% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in operating margin.
“We executed very well in the first quarter as we delivered better than expected revenue and earnings in a mixed demand environment,” said AMD Chair and CEO Dr. Lisa Su.
The stock is up 38.8% since the results and currently trades at $124.8.
Is now the time to buy AMD? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $269.4 million, up 34.5% year on year, beating analyst expectations by 1.67%. It was a very strong quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter above analysts' estimates.
Allegro MicroSystems delivered the fastest revenue growth among its peers. The stock is up 4.76% since the results and currently trades at $39.42.
Is now the time to buy Allegro MicroSystems? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $9.28 billion, down 16.9% year on year, beating analyst expectations by 1.73%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in operating margin.
The stock is up 3.35% since the results and currently trades at $116.5.
Read our full analysis of Qualcomm's results here.
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 $11.7 billion, down 36.2% year on year, beating analyst expectations by 5.25%. It was a mixed quarter for the company, with a decline in operating margin but strong sales guidance for the next quarter.
The stock is up 3.85% since the results and currently trades at $30.95.
Read our full, actionable report on Intel here, it's free.
Nvidia (NASDAQ:NVDA)
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 $7.19 billion, down 13.2% year on year, beating analyst expectations by 10.3%. It was a very strong quarter for the company, with a significant improvement in inventory levels and strong sales guidance for the next quarter.
Nvidia achieved the strongest analyst estimates beat among the peers. The stock is up 26.5% since the results and currently trades at $386.25.
Read our full, actionable report on Nvidia here, it's free.
The author has no position in any of the stocks mentioned