17278

Q1 Earnings Outperformers: AMD (NASDAQ:AMD) And The Rest Of The Processors and Graphics Chips Stocks


Jabin Bastian /
2024/06/14 4:07 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its 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 industry.

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 an ok Q1; on average, revenues beat analyst consensus estimates by 1.6%. while next quarter's revenue guidance was 5% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and processors and graphics chips stocks have held roughly steady amidst all this, with share prices up 4.2% on average since the previous earnings results.

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 $5.47 billion, up 2.2% year on year, in line with analysts' expectations. It was a mixed quarter for the company, with a decent beat of analysts' EPS estimates but an increase in its inventory levels.

“We delivered strong first quarter results with our Data Center and Client segments each growing more than 80% year-over-year driven by the ramp of MI300 AI accelerator shipments and the adoption of our Ryzen and EPYC processors,” said AMD Chair and CEO Dr. Lisa Su.

AMD Total Revenue

The stock is up 0.8% since the results and currently trades at $159.89.

Is now the time to buy AMD? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $26.04 billion, up 262% year on year, outperforming analysts' expectations by 6.1%. It was an exceptional quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

Nvidia Total Revenue

Nvidia scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 37.5% since the results and currently trades at $130.47.

Is now the time to buy Nvidia? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $140.8 million, down 23.6% year on year, in line with analysts' expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

The stock is down 19.5% since the results and currently trades at $61.92.

Read our full analysis of Lattice Semiconductor'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 $12.72 billion, up 8.6% year on year, falling short of analysts' expectations by 0.4%. It was a decent quarter for the company, with a significant improvement in its gross margin but underwhelming revenue guidance for the next quarter.

Intel had the weakest performance against analyst estimates among its peers. The stock is down 13.7% since the results and currently trades at $30.34.

Read our full, actionable report on Intel here, it's free.

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 $941 million, up 48.7% year on year, surpassing analysts' expectations by 1.6%. It was a solid quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

The stock is up 0.8% since the results and currently trades at $112.75.

Read our full, actionable report on Qorvo here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.