Let’s dig into the relative performance of Intel (NASDAQ:INTC) and its peers as we unravel the now-completed Q4 processors and graphics chips earnings season.
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 a solid Q4; on average, revenues beat analyst consensus estimates by 2.1% while next quarter’s revenue guidance was 3.9% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but processors and graphics chips stocks held their ground better than others, with the share prices up 12.6% on average since the previous earnings results.
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 $15.41 billion, up 9.7% year on year, topping analyst expectations by 1.5%. It was a decent quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts’ EPS estimates. However, its revenue guidance for next quarter missed analysts’ expectations.
“We delivered strong Q4 results, surpassing expectations for the fourth consecutive quarter with revenue at the higher end of our guidance,” said Pat Gelsinger, Intel CEO.
The stock is down 15.2% since the results and currently trades at $42.05.
Is now the time to buy Intel? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $22.1 billion, up 265% year on year, outperforming analyst expectations by 7.6%. It was a stunning quarter for the company, with a meaningful revenue beat, strong gross margin improvement, and EPS outperformance vs. Wall Street’s estimates. Guidance for the next quarter was also good, with revenue, gross margin, and implied operating profit coming in ahead of expectations.
Nvidia delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 41.9% since the results and currently trades at $957.41.
Is now the time to buy Nvidia? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $170.6 million, down 3% year on year, falling short of analyst expectations by 3.3%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts’ revenue estimates.
Lattice Semiconductor had the weakest performance against analyst estimates in the group. The stock is up 11.8% since the results and currently trades at $79.35.
Read our full analysis of Lattice Semiconductor’s results here.
SMART (NASDAQ:SGH)
Based in the US, SMART Global Holdings (NASDAQ:SGH) is a diversified semiconductor company offering memory, digital, and LED products.
SMART reported revenues of $274.2 million, down 30% year on year, falling short of analyst expectations by 0.3%. It was a decent quarter for the company, with an impressive beat of analysts’ EPS estimates. While revenue missed by a small margin, full year revenue outlook was raised, which is a major positive.
SMART had the slowest revenue growth among its peers. The stock is up 43.1% since the results and currently trades at $26.45.
Read our full, actionable report on SMART here, it’s free.
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 $1.07 billion, up 44.5% year on year, surpassing analyst expectations by 7.1%. It was an impressive quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
The stock is up 14.4% since the results and currently trades at $114.11.
Read our full, actionable report on Qorvo here, it’s free.
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