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A Look Back at Semiconductors Stocks' Q2 Earnings: Micron Technology (NASDAQ:MU) Vs The Rest Of The Pack


Kayode Omotosho /
2022/07/05 4:27 am EDT
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As Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers amongst the semiconductors stocks, including Micron Technology (NASDAQ:MU) and its peers.

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 22 semiconductors stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 1.77%, while on average next quarter revenue guidance was 0.68% under consensus. Tech stocks have had a rocky start in 2022 and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 15.4% 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 $8.64 billion, up 16.4% year on year, missing analyst expectations by 0.03%. It was a mixed quarter for the company, with a significant improvement in gross margin but revenue guidance for the next quarter below analysts' estimates.

Micron Technology Total Revenue

The stock is down 3.87% since the results and currently trades at $53.30.

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

Best Q2: 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 6.47%. It was an impressive 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 and highest full year guidance raise among its peers. The stock is down 19.4% since the results and currently trades at $73.43.

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

Weakest Q2: Lam Research (NASDAQ:LRCX)

Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.

Lam Research reported revenues of $4.06 billion, up 5.52% year on year, missing analyst expectations by 4.33%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

Lam Research had the weakest performance against analyst estimates in the group. The stock is down 18.5% since the results and currently trades at $393.

Read our full analysis of Lam Research's results here.

NXP Semiconductors (NASDAQ:NXPI)

Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.

NXP Semiconductors reported revenues of $3.13 billion, up 22.1% year on year, beating analyst expectations by 1.04%. It was a solid quarter for the company, with a significant improvement in operating margin.

The stock is down 17.3% since the results and currently trades at $146.24.

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

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 $6.24 billion, up 11.8% year on year, missing analyst expectations by 1.63%. It was a weak 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 22.3% since the results and currently trades at $86.

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

The author has no position in any of the stocks mentioned