Processors and Graphics Chips Stocks Q1 Results: Benchmarking Qorvo (NASDAQ:QRVO)

Looking back on processors and graphics chips stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Qorvo (NASDAQ:QRVO) and its peers.

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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 0.6% below.

Luckily, processors and graphics chips stocks have performed well with share prices up 28.6% on average since the latest 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 $869.5 million, down 7.6% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “During the March quarter, Qorvo achieved stronger than seasonal sequential revenue while surpassing the midpoint of EPS guidance by 42 cents and expanding gross margin year-over-year. Looking across our business segments, our growth and margin targets are anchored in a multi-year strategy focused on winning content with our largest customer and building on our core RF and power expertise to drive diversification through CSG and HPA. We are on a path to continue to improve our business mix and our manufacturing footprint.”

Interestingly, the stock is up 39.7% since reporting and currently trades at $87.50.

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

Best Q1: 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 $192.8 million, down 19.9% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 91% since reporting. It currently trades at $35.70.

Is now the time to buy Allegro MicroSystems? 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 $120.2 million, down 14.7% year on year, in line with analysts’ expectations. It was a slower quarter as it posted an increase in its inventory levels and a slight miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 2.8% since the results and currently trades at $51.57.

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 (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

AMD reported revenues of $7.44 billion, up 35.9% year on year. This result beat analysts’ expectations by 4.4%. Taking a step back, it was a satisfactory quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates.

AMD pulled off the biggest analyst estimates beat among its peers. The stock is up 63% since reporting and currently trades at $160.68.

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

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 a leading manufacturer of computer processors and graphics chips.

Intel reported revenues of $12.67 billion, flat year on year. This number surpassed analysts’ expectations by 2.6%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS estimates.

The stock is up 6.3% since reporting and currently trades at $22.83.

Read our full, actionable report on Intel here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.