The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the processors and graphics chips stocks have fared in Q3, starting with Intel Corporation (NASDAQ:INTC).
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. The technology sell-off has been putting pressure on stocks since November and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share price declining 13.2% since earnings, on average.
Intel Corporation (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 Corporation 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 full-year guidance beating analysts' expectations.
“Q3 shone an even greater spotlight on the global demand for semiconductors, where Intel has the unique breadth and scale to lead. Our focus on execution continued as we started delivering on our IDM 2.0 commitments. We broke ground on new fabs, shared our accelerated path to regain process performance leadership, and unveiled our most dramatic architectural innovations in a decade. We also announced major customer wins across every part of our business,” said Pat Gelsinger, Intel CEO.
Intel Corporation pulled off the strongest analyst estimates beat but had the slowest revenue growth of the whole group. The stock is down 7.4% since the results and currently trades at $51.88.
Is now the time to buy Intel Corporation? Access our full analysis of the earnings results here, it's free.
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.
Advanced Micro Devices 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.
Advanced Micro Devices achieved the fastest revenue growth among its peers. The stock is down 4.24% since the results and currently trades at $117.71.
Is now the time to buy Advanced Micro Devices? 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 $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 8.76% since the results and currently trades at $532.30.
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 tough 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 25% since the results and currently trades at $133.51.
NVIDIA Corporation (NASDAQ:NVDA)
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of graphics chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
NVIDIA Corporation 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.
The stock is down 20.9% since the results and currently trades at $231.25.
The author has no position in any of the stocks mentioned