Wrapping up Q4 earnings, we look at the numbers and key takeaways for the semiconductors stocks, including Western Digital (NASDAQ:WDC) 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 41 semiconductors stocks we track reported a weak Q4; on average, revenues beat analyst consensus estimates by 1.59%, while on average next quarter revenue guidance was 0.96% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but semiconductors stocks held their ground better than others, with share prices down 3.33% since the previous earnings results, on average.
Weakest Q4: Western Digital (NASDAQ:WDC)
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Western Digital reported revenues of $3.11 billion, down 35.7% year on year, beating analyst expectations by 4.5%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.
“The Western Digital team delivered revenue at the high end of our guidance range, despite a challenging flash price environment and continued cloud inventory digestion,” said David Goeckeler, Western Digital CEO.
The stock is down 21.1% since the results and currently trades at $34.6.
Read our full report on Western Digital 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 26.5% since the results and currently trades at $43.55.
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 1.94% since the results and currently trades at $60.5.
Read our full analysis of Micron Technology's results here.
Universal Display (NASDAQ:OLED)
Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Universal Display reported revenues of $169 million, up 15.6% year on year, beating analyst expectations by 13.4%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations.
The stock is up 5.87% since the results and currently trades at $137.
Read our full, actionable report on Universal Display here, it's free.
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 $6.05 billion, down 20.8% year on year, in line with analyst expectations. It was a weaker quarter for the company, with declining revenue and operating margin.
The stock is up 33.7% since the results and currently trades at $278.09.
Read our full, actionable report on Nvidia here, it's free.
The author has no position in any of the stocks mentioned