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 have a look at how the semiconductors stocks have fared in Q4, starting with Seagate Technology (NASDAQ:STX).
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 41 semiconductors stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.71%, while on average next quarter revenue guidance was 0.79% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but semiconductors stocks held their ground better than others, with share prices down 2.08% since the previous earnings results, on average.
Seagate Technology (NASDAQ:STX)
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Seagate Technology reported revenues of $1.89 billion, down 39.4% year on year, beating analyst expectations by 3.22%. It was a mixed quarter for the company, with a significant improvement in inventory levels but declining revenue.
“Seagate is effectively managing through a tough macroeconomic environment. In the December quarter, we delivered revenue and non-GAAP EPS slightly above our guidance midpoint and extended a decade long trend of generating positive free cash flow,” said Dave Mosley, Seagate’s chief executive officer.
The stock is up 2.37% since the results and currently trades at $63.8.
Is now the time to buy Seagate Technology? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $248.8 million, up 33.3% year on year, beating analyst expectations by 1.58%. It was a very strong quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.
The stock is up 31.1% since the results and currently trades at $45.15.
Is now the time to buy Allegro MicroSystems? Access our full analysis of the earnings results here, it's free.
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 $3.69 billion, down 52.6% year on year, missing analyst expectations by 0.37%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.
The stock is up 5.53% since the results and currently trades at $62.63.
Read our full analysis of Micron Technology's results here.
Impinj (NASDAQ:PI)
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.
Impinj reported revenues of $76.6 million, up 45.7% year on year, in line with analyst expectations. It was a solid quarter for the company, with a significant improvement in operating margin and revenue guidance for the next quarter above analysts' estimates.
The stock is up 4.44% since the results and currently trades at $130.71.
Read our full, actionable report on Impinj here, it's free.
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 $8.92 billion, up 15.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in inventory levels but a decline in gross margin.
The stock is up 3.54% since the results and currently trades at $620.75.
Read our full, actionable report on Broadcom here, it's free.
The author has no position in any of the stocks mentioned