Let’s dig into the relative performance of Monolithic Power Systems (NASDAQ:MPWR) and its peers as we unravel the now-completed Q1 analog semiconductors earnings season.
Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.
The 15 analog semiconductors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.9%. while next quarter’s revenue guidance was in line with consensus. Stocks–especially those trading at higher multiples–had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but analog semiconductors stocks have exhibited impressive performance, with the share prices up 10.6% on average since the previous earnings results.
Monolithic Power Systems (NASDAQ:MPWR)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Monolithic Power Systems reported revenues of $457.9 million, up 1.5% year on year, topping analysts’ expectations by 2.9%. It was a solid quarter for the company, with an impressive beat of analysts’ EPS estimates and optimistic revenue guidance for the next quarter.
“We saw consistent improvement through the first quarter, but we continue to be cautious about second half 2024 business conditions. Overall, our proven, long-term growth strategy remains intact, and we can swiftly adapt to market changes as they occur,” said Michael Hsing, CEO and founder of MPS.
The stock is up 15.3% since the results and currently trades at $750.
Best Q1: 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 $76.83 million, down 10.6% year on year, outperforming analysts’ expectations by 4.4%. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
The stock is up 37.8% since the results and currently trades at $166.46.
Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Microchip Technology (NASDAQ:MCHP)
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Microchip Technology reported revenues of $1.33 billion, down 40.6% year on year, falling short of analysts’ expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts’ revenue estimates.
Microchip Technology had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 6.5% since the results and currently trades at $99.9.
Read our full analysis of Microchip Technology’s results here.
Magnachip (NYSE:MX)
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.
Magnachip reported revenues of $49.07 million, down 13.9% year on year, in line with analysts’ expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.
The stock is down 0.4% since the results and currently trades at $4.91.
Read our full, actionable report on Magnachip here, it’s free.
ON Semiconductor (NASDAQ:ON)
Spun out of Motorola in 1999 and built through a series of acquisitions, ON Semiconductor (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
ON Semiconductor reported revenues of $1.86 billion, down 4.9% year on year, in line with analysts’ expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.
The stock is up 5.9% since the results and currently trades at $72.09.
Read our full, actionable report on ON Semiconductor here, it’s free.
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