As Q4 earnings season comes to a close, it’s time to take stock of this quarters’ best and worst performers amongst the processors and graphics chips stocks, including 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 solid Q4; on average, revenues beat analyst consensus estimates by 4.34%, while on average next quarter revenue guidance was 8.05% above consensus. Technology stocks have been hit hard on fears of higher interest rates and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share price declining 11% since earnings, on average.
Best Q4: 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 $4.82 billion, up 48.7% year on year, beating analyst expectations by 6.54%. It was a stunning quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.
“2021 was an outstanding year for AMD with record annual revenue and profitability,” said AMD President and CEO Dr. Lisa Su.
The stock is down 10.2% since the results and currently trades at $104.81.
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 $7.64 billion, up 52.7% year on year, beating analyst expectations by 2.87%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
Nvidia delivered the fastest revenue growth among its peers. The stock is down 7.84% since the results and currently trades at $244.55.
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Weakest Q4: 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 $1.11 billion, up 1.74% year on year, in line with analyst expectations. It was a weaker quarter for the company, with an increase in inventory levels and a slow revenue growth.
Qorvo had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 19.3% since the results and currently trades at $116.
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 $10.7 billion, up 29.9% year on year, beating analyst expectations by 2.59%. It was a strong quarter for the company, with an increase in gross margin and a very optimistic guidance for the next quarter.
The stock is down 25.2% since the results and currently trades at $140.78.
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 $20.5 billion, up 2.75% year on year, beating analyst expectations by 12%. It was a mixed quarter for the company, with a beat on the bottom line but a decline in operating margin.
Intel scored the strongest analyst estimates beat among the peers. The stock is down 7.83% since the results and currently trades at $47.65.
The author has no position in any of the stocks mentioned