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Q1 Rundown: Qorvo (NASDAQ:QRVO) Vs Other Processors and Graphics Chips Stocks


Radek Strnad /
2024/06/20 6:19 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how processors and graphics chips stocks fared in Q1, starting with Qorvo (NASDAQ:QRVO).

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 5% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but processors and graphics chips stocks have shown resilience, with share prices up 7% on average since the previous earnings results.

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 $941 million, up 48.7% year on year, topping analysts' expectations by 1.6%. It was a solid quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “Qorvo delivered year-over-year revenue growth in the March quarter in each of our three operating segments. There are global macro trends supporting our markets that are increasing customer requirements for efficiency, latency, throughput, and other critical performance metrics where Qorvo delivers significant competitive advantage.

Qorvo Total Revenue

The stock is up 2.6% since the results and currently trades at $114.76.

Is now the time to buy Qorvo? 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 pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 46.5% since the results and currently trades at $138.92.

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

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.

The stock is down 21% since the results and currently trades at $60.77.

Read our full analysis of Lattice Semiconductor's results here.

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 $5.47 billion, up 2.2% year on year, in line with analysts' expectations. It was a mixed quarter for the company, with an increase in its inventory levels.

The stock is down 1.4% since the results and currently trades at $156.38.

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

Allegro MicroSystems (NASDAQ:ALGM)

The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.

Allegro MicroSystems reported revenues of $240.6 million, down 10.7% year on year, surpassing analysts' expectations by 2.4%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

The stock is down 3.4% since the results and currently trades at $28.36.

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

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