As semiconductor manufacturing stocks’ Q4 earnings season wraps, let's dig into this quarters’ best and worst performers, including Marvell Technology (NASDAQ:MRVL) and its peers.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers and data storage. The growth of data and technologies like artificial intelligence, 5G networks and smart cars are also creating a next wave of growth for the industry. To keep up with ever changing customer needs requires new tools that can design, fabricate and test at ever smaller sizes and more complex architectures, and that is driving the demand for semiconductor capital manufacturing equipment.
The 4 semiconductor manufacturing stocks we track reported a mixed Q4; on average, revenues missed analyst consensus estimates by 0.04%, while on average next quarter revenue guidance was 2.71% under consensus. Tech stocks have had a rocky start in 2022 and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share price declining 11.5% since earnings, on average.
Best Q4: Marvell Technology (NASDAQ:MRVL)
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Marvell Technology reported revenues of $1.34 billion, up 68.3% year on year, beating analyst expectations by 1.4%. It was a solid quarter for the company, with a significant improvement in operating margin and an exceptional revenue growth.
"Marvell delivered record revenue of $1.34 billion in the fourth quarter of fiscal 2022, growing 11 percent sequentially and 68 percent year over year, exceeding the midpoint of guidance. The Marvell team continued to rack up design wins, securing additional sockets at key customers leveraging our advanced technology platforms," said Matt Murphy, Marvell's President and CEO.
Marvell Technology scored the fastest revenue growth of the whole group. The stock is down 2.4% since the results and currently trades at $63.65.
Is now the time to buy Marvell Technology? Access our full analysis of the earnings results here, it's free.
KLA Corporation (NASDAQ:KLAC)
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
KLA Corporation reported revenues of $2.35 billion, up 42.5% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter.
The stock is down 6.7% since the results and currently trades at $336.79.
Is now the time to buy KLA Corporation? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Lam Research Corporation (NASDAQ:LRCX)
Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is a one of the leading providers of the wafer fabrication equipment used to make semiconductors.
Lam Research Corporation reported revenues of $4.22 billion, up 51.3% year on year, missing analyst expectations by 4.26%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
Lam Research Corporation had the weakest performance against analyst estimates in the group. The stock is down 20.8% since the results and currently trades at $472.75.
Applied Materials (NASDAQ:AMAT)
Founded in 1967 as the first company that built the tools for other companies to use to make semiconductors, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Applied Materials reported revenues of $6.27 billion, up 21.4% year on year, beating analyst expectations by 1.8%. It was a mixed quarter for the company, with a meaningful improvement in operating margin but an underwhelming revenue guidance for the next quarter.
Applied Materials scored the strongest analyst estimates beat but had the slowest revenue growth among the peers. The stock is down 16.1% since the results and currently trades at $117.96.
The author has no position in any of the stocks mentioned