9476

Reflecting On Processors and Graphics Chips Stocks’ Q2 Earnings: Intel (NASDAQ:INTC)


Adam Hejl /
2022/09/14 6:35 am EDT
Add to Watchlist

As processors and graphics chips stocks’ Q2 earnings season wraps, let's dig into this quarters’ 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 6 processors and graphics chips stocks we track reported a weaker Q2; on average, revenues missed analyst consensus estimates by 2%, while on average next quarter revenue guidance was 5.98% under consensus. Tech stocks have had a rocky start in 2022 and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share price declining 17.3% since earnings, on average.

Weakest Q2: 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 $15.3 billion, down 22% year on year, missing analyst expectations by 14.5%. It was a weak quarter for the company, with guidance for both the next quarter and the full year missing analysts' expectations.

Intel Total Revenue

Intel delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full year guidance update of the whole group. The stock is down 25.5% since the results and currently trades at $29.54.

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

Best Q2: 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 $6.55 billion, up 70.1% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in gross margin but an underwhelming revenue guidance for the next quarter.

AMD Total Revenue

AMD pulled off the fastest revenue growth and highest full year guidance raise among its peers. The stock is down 21.9% since the results and currently trades at $77.54.

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

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 $6.7 billion, up 3.02% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a decline in operating margin.

The stock is down 23.1% since the results and currently trades at $132.32.

Read our full analysis of Nvidia's results here.

Broadcom (NASDAQ:AVGO)

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 $8.46 billion, up 24.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a strong sales guidance for the next quarter but an increase in inventory levels.

The stock is up 3.41% since the results and currently trades at $508.94.

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

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 $10.9 billion, up 35.6% year on year, in line with analyst expectations. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Qualcomm pulled off the strongest analyst estimates beat among the peers. The stock is down 17.5% since the results and currently trades at $126.38.

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

The author has no position in any of the stocks mentioned