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Q3 Rundown: Micron Technology (NASDAQ:MU) Vs Other Semiconductors Stocks


Kayode Omotosho /
2022/01/24 6:02 am EST
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The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Micron Technology (NASDAQ:MU) and the rest of the semiconductors stocks fared in Q3.

The semiconductor industry is driven by cyclical demand for advanced electronic products like smartphones, PCs, servers and data storage. While analog chips serve as the building blocks of most electronic goods and equipment, processors (CPUs) and graphics chips serve as their brains. The growth of data and technologies like artificial intelligence, 5G, Internet of Things and smart cars are creating a next wave of secular growth for the industry.

The 20 semiconductors stocks we track reported a solid Q3; on average, revenues beat analyst consensus estimates by 1.92%, while on average next quarter revenue guidance was 1.97% above consensus. There has been a stampede out of high valuation technology stocks , but semiconductors stocks held their ground better than others, with share price down 2.71% since earnings, on average.

Micron Technology (NASDAQ:MU)

Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.

Micron Technology reported revenues of $7.68 billion, up 33.1% year on year, in line with analyst expectations. It was a strong quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter above analyst estimates.

“Micron delivered solid fiscal first quarter results led by strong product portfolio momentum,” said Micron Technology President and CEO Sanjay Mehrotra.

Micron Technology Total Revenue

The stock is down 0.93% since the results and currently trades at $81.30.

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

Best Q3: 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.

Advanced Micro Devices reported revenues of $4.31 billion, up 53.9% year on year, beating analyst expectations by 4.85%. It was a stunning quarter for the company, with a significant improvement in gross margin and revenue guidance for the next quarter above analyst estimates.

Advanced Micro Devices Total Revenue

The stock is down 4.24% since the results and currently trades at $117.71.

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

Weakest Q3: 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 $6.12 billion, up 30.6% year on year, missing analyst expectations by 3.33%. 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.

Applied Materials had the biggest earnings miss in the group. The stock is down 15.2% since the results and currently trades at $134.50.

Read our full analysis of Applied Materials's results here.

ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999, and built through a series of acquisitions, ON Semiconductor (NASDAQ: ON) is a global provider of analog chips with specialization in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $1.74 billion, up 32.2% year on year, beating analyst expectations by 1.7%. It was a very strong quarter for the company, with a significant improvement in gross margin.

The stock is up 13.5% since the results and currently trades at $54.67.

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

Texas Instruments (NASDAQ:TXN)

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.

Texas Instruments reported revenues of $4.64 billion, up 21.6% year on year, missing analyst expectations by 0.58%. 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.

The stock is down 10.5% since the results and currently trades at $176.19.

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

The author has no position in any of the stocks mentioned