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Unpacking Q4 Earning: Qualcomm (NASDAQ:QCOM) In The Context Of Other Processors and Graphics Chips Stocks


Kayode Omotosho /
2022/04/04 7:28 am EDT
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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Qualcomm (NASDAQ:QCOM), and the best and worst performers in the processors and graphics chips group.

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 6 processors and graphics chips stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 4.34%, while on average next quarter revenue guidance was 8.05% above consensus. Tech stocks have had a rocky start in 2022, but processors and graphics chips stocks held their ground better than others, with share price down 7.17% since earnings, on average.

Qualcomm (NASDAQ:QCOM)

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM), is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.

Qualcomm reported revenues of $10.7 billion, up 29.9% year on year, beating analyst expectations by 2.59%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and a beat on the bottom line.

Qualcomm Total Revenue

The stock is down 21.9% since the results and currently trades at $147.

We think Qualcomm is a good business, but is it a buy today? Read our full report here, it's free.

Best Q4: 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 $4.82 billion, up 48.7% year on year, beating analyst expectations by 6.54%. It was a stunning quarter for the company, with a significant improvement in gross margin and a beat on the bottom line.

AMD Total Revenue

The stock is down 7.5% since the results and currently trades at $108.04.

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

Weakest Q4: Qorvo (NASDAQ:QRVO)

Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.

Qorvo reported revenues of $1.11 billion, up 1.74% year on year, in line with analyst expectations. It was a weaker quarter for the company, with an increase in inventory levels and a slow revenue growth.

Qorvo had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 15.4% since the results and currently trades at $121.50.

Read our full analysis of Qorvo's results here.

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 $7.7 billion, up 15.7% year on year, beating analyst expectations by 1.3%. It was a mixed quarter for the company, with a very optimistic guidance for the next quarter but an increase in inventory levels.

The stock is up 8.4% since the results and currently trades at $627.50.

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

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 $20.5 billion, up 2.75% year on year, beating analyst expectations by 12%. It was a mixed quarter for the company, with a solid beat on the bottom line but a decline in operating margin.

Intel pulled off the strongest analyst estimates beat among the peers. The stock is down 6.98% since the results and currently trades at $48.09.

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

The author has no position in any of the stocks mentioned