A Look Back at Processors and Graphics Chips Stocks' Q1 Earnings: Intel (NASDAQ:INTC) Vs The Rest Of The Pack
Petr Huřťák 2023/06/09 6:57 am EDT
As processors and graphics chips stocks’ Q1 earnings season wraps, let's dig into this quarter's best and worst performers, including Intel (NASDAQ:INTC) 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. Technology stocks have been hit hard on fears of higher interest rates 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 14.5% since the previous earnings results, on average.
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 beat on the bottom line but a decline in operating margin.
The stock is up 6.3% since the results and currently trades at $31.72.
Read our full report on Intel 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 $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 a beat on the bottom line.
Nvidia delivered the strongest analyst estimates beat among its peers. The stock is up 27.6% since the results and currently trades at $389.8.
Is now the time to buy Nvidia? 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 3.67% since the results and currently trades at $116.86.
Read our full analysis of Qualcomm's results here.
SMART (NASDAQ:SGH)
Based in the US, SMART Global Holdings (NASDAQ:SGH) is a diversified semiconductor company offering memory, digital, and LED products.
SMART reported revenues of $429.2 million, down 4.45% year on year, missing analyst expectations by 1.34%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
SMART had the weakest performance against analyst estimates among the peers. The stock is up 43.8% since the results and currently trades at $23.8.
Read our full, actionable report on SMART here, it's free.
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.
The stock is up 36.3% since the results and currently trades at $122.53.
Read our full, actionable report on AMD here, it's free.
The author has no position in any of the stocks mentioned