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Reflecting On Processors and Graphics Chips Stocks’ Q1 Earnings: Intel (NASDAQ:INTC)


Radek Strnad /
2024/07/01 5:22 am EDT

Looking back on processors and graphics chips stocks' Q1 earnings, we examine 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 an ok Q1; on average, revenues beat analyst consensus estimates by 1.6%. while next quarter's revenue guidance was 5% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and processors and graphics chips stocks have held roughly steady amidst all this, with share prices up 0.7% on average since the previous earnings results.

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.

“We are making steady progress against our priorities and delivered a solid quarter,” said Pat Gelsinger, Intel CEO.

Intel Total Revenue

Intel delivered the weakest performance against analyst estimates of the whole group. The stock is down 11.7% since the results and currently trades at $31.03.

Is now the time to buy Intel? 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%. 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 pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 27.2% since the results and currently trades at $120.79.

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 24.7% since the results and currently trades at $57.9.

Read our full analysis of Lattice Semiconductor's results here.

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 $9.39 billion, up 1.2% year on year, in line with analysts' expectations. It was a decent quarter for the company, with a solid beat of analysts' EPS estimates but an increase in its inventory levels.

The stock is up 20.9% since the results and currently trades at $198.65.

Read our full, actionable report on Qualcomm 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 5.1% since the results and currently trades at $117.5.

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

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