Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 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 6 processors and graphics chips stocks we track reported a weaker Q2; on average, revenues missed analyst consensus estimates by 2%, while on average next quarter revenue guidance was 5.98% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable and processors and graphics chips stocks have not been spared, with share price down 17.3% since the previous earnings results, on average.
Best Q2: 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 $6.55 billion, up 70.1% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in gross margin but an underwhelming revenue guidance for the next quarter.
“We delivered our eighth straight quarter of record revenue based on our strong execution and expanded product portfolio,” said AMD Chair and CEO Dr. Lisa Su.
AMD achieved the fastest revenue growth and highest full year guidance raise of the whole group. The stock is down 21.7% since the results and currently trades at $77.63.
Is now the time to buy AMD? Access our full analysis of the earnings results here, it's free.
Originally the semiconductor division of Hewlett Packard, 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 $8.46 billion, up 24.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a strong sales guidance for the next quarter but an increase in inventory levels.
The stock is up 4.05% since the results and currently trades at $512.10.
Is now the time to buy Broadcom? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $15.3 billion, down 22% year on year, missing analyst expectations by 14.5%. It was a weak quarter for the company, with guidance for both the next quarter and the full year missing analysts' expectations.
Intel had the weakest performance against analyst estimates, slowest revenue growth, and weakest full year guidance update in the group. The stock is down 26.3% since the results and currently trades at $29.25.
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 $10.9 billion, up 35.6% year on year, in line with analyst expectations. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.
Qualcomm pulled off the strongest analyst estimates beat among the peers. The stock is down 17.3% since the results and currently trades at $126.61.
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 $1.03 billion, down 6.76% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a slow revenue growth and a decline in gross margin.
The stock is down 19.2% since the results and currently trades at $86.25.
The author has no position in any of the stocks mentioned