As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the processors and graphics chips stocks, including Lattice Semiconductor (NASDAQ:LSCC) 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 weaker Q4; on average, revenues beat analyst consensus estimates by 0.72%, while on average next quarter revenue guidance was 3.36% under consensus. Increasing interest rates hurt growth companies 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 5.67% since the previous earnings results, on average.
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 $176 million, up 24.1% year on year, in line with analyst expectations. It was a solid quarter for the company, with a significant improvement in operating margin and revenue guidance for the next quarter above analysts' estimates.
Jim Anderson, president and CEO, said, "We grew revenue 28% for the full year 2022, with continued strong growth in our strategic segments of industrial and automotive, and communications and computing. We delivered 86% annual growth in net income on a GAAP basis and 64% on a non-GAAP basis. In December, we launched the Lattice Avant™ platform, which doubles our addressable market and creates new greenfield growth opportunities. As we begin 2023, while we’re certainly not immune to any macro-economic challenges impacting the industry, the Company is well positioned in secular growth markets, with an expanding product portfolio, accelerating customer momentum and strong financial execution. "
The stock is up 11.2% since the results and currently trades at $92.
Best Q4: Allegro MicroSystems (NASDAQ:ALGM)
The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.
Allegro MicroSystems reported revenues of $248.8 million, up 33.3% year on year, beating analyst expectations by 1.58%. It was a very strong quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.
Allegro MicroSystems achieved the fastest revenue growth among its peers. The stock is up 32% since the results and currently trades at $45.45.
Is now the time to buy Allegro MicroSystems? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $14 billion, down 31.6% year on year, missing analyst expectations by 3.67%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.
Intel had the weakest performance against analyst estimates in the group. The stock is down 7.05% since the results and currently trades at $27.96.
Read our full analysis of Intel's results here.
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 $5.6 billion, up 16% year on year, beating analyst expectations by 1.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is up 16.3% since the results and currently trades at $87.45.
Read our full, actionable report on AMD here, it's free.
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 $8.92 billion, up 15.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in inventory levels but a decline in gross margin.
The stock is up 5.5% since the results and currently trades at $632.45.
Read our full, actionable report on Broadcom here, it's free.
The author has no position in any of the stocks mentioned