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Unpacking Q1 Earnings: Lattice Semiconductor (NASDAQ:LSCC) In The Context Of Other Processors and Graphics Chips Stocks


Petr Huřťák /
2024/07/11 7:21 am EDT

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at processors and graphics chips stocks, starting with Lattice Semiconductor (NASDAQ:LSCC).

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 4.7% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but processors and graphics chips stocks have performed well, with the share prices up 14.4% on average since the previous earnings results.

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.

Jim Anderson, president and CEO, said, "First quarter 2024 results came in as expected and reflect the near-term impact of cyclic industry headwinds. Despite near-term headwinds, the Company is well-positioned for the long-term as we execute on the largest product portfolio expansion in our history. "

Lattice Semiconductor Total Revenue

Lattice Semiconductor delivered the slowest revenue growth of the whole group. The stock is down 20% since reporting and currently trades at $61.5.

Is now the time to buy Lattice Semiconductor? 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 achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 43.1% since reporting. It currently trades at $135.73.

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

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 $300.6 million, down 12.7% 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 miss of analysts' EPS estimates.

Interestingly, the stock is up 27.2% since the results and currently trades at $29.53.

Read our full analysis of SMART's results here.

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, in line with analysts' expectations. Looking more broadly, it was a decent quarter for the company with a significant improvement in its gross margin but underwhelming revenue guidance for the next quarter.

Intel had the weakest performance against analyst estimates among its peers. The stock is down 1.5% since reporting and currently trades at $34.63.

Read our full, actionable report on Intel 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 $12.49 billion, up 43% year on year, surpassing analysts' expectations by 4%. Looking more broadly, it was a mixed quarter for the company with a meaningful improvement in its inventory levels but a miss of analysts' EPS estimates.

The stock is up 17.4% since reporting and currently trades at $1,752.79.

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

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