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Winners And Losers Of Q1: Intel (NASDAQ:INTC) Vs The Rest Of The Processors and Graphics Chips Stocks


Radek Strnad /
2022/06/07 7:13 am EDT
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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 Q1, starting with Intel (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 6 processors and graphics chips stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 2.89%, while on average next quarter revenue guidance was 0.12% above consensus. The technology sell-off has been putting pressure on stocks since November, but processors and graphics chips stocks held their ground better than others, with the share price up 3.13% since earnings, on average.

Weakest Q1: 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 $18.3 billion, down 6.71% year on year, in line with analyst expectations. It was a weak quarter for the company, with a slow revenue growth and an underwhelming revenue guidance for the next quarter.

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 7.81% since the results and currently trades at $43.19.

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

Best Q1: 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 $5.88 billion, up 70.8% year on year, beating analyst expectations by 5.62%. It was a very strong quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.

AMD Total Revenue

AMD scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is up 15.2% since the results and currently trades at $105.10.

Is now the time to buy AMD? Access our full analysis of the earnings results 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 $1.16 billion, up 8.7% year on year, beating analyst expectations by 1.38%. It was a mixed quarter for the company, with a beat on the bottom line but an underwhelming revenue guidance for the next quarter.

The stock is down 8.36% since the results and currently trades at $109.36.

Read our full analysis of Qorvo'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 $8.1 billion, up 22.5% year on year, beating analyst expectations by 2.46%. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but an increase in inventory levels.

The stock is up 5.69% since the results and currently trades at $562.

Read our full, actionable report on Broadcom 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 $8.28 billion, up 46.4% year on year, beating analyst expectations by 2.4%. Despite the solid top-line results, it was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

The stock is up 10.3% since the results and currently trades at $187.28.

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

The author has no position in any of the stocks mentioned