Impinj (NASDAQ:PI): Strongest Q2 Results from the Analog Semiconductors Group

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the analog semiconductors industry, including Impinj (NASDAQ:PI) and its peers.

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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Best Q2: 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 $97.89 million, down 4.5% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was an exceptional quarter for the company with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 53.1% since reporting and currently trades at $187.51.

We think Impinj is a good business, but is it a buy today? Read our full report here, it’s free.

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 $171.8 million, up 8.4% year on year, outperforming analysts’ expectations by 6.1%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Universal Display scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.3% since reporting. It currently trades at $138.45.

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

Weakest Q2: Himax (NASDAQ:HIMX)

Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.

Himax reported revenues of $214.8 million, down 10.4% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted EPS in line with analysts’ estimates and an increase in its inventory levels.

As expected, the stock is down 5.4% since the results and currently trades at $8.17.

Read our full analysis of Himax’s results here.

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 $664.6 million, up 31% year on year. This result surpassed analysts’ expectations by 1.9%. Taking a step back, it was a satisfactory quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.

The stock is up 17.2% since reporting and currently trades at $835.

Read our full, actionable report on Monolithic Power Systems here, it’s free.

MACOM (NASDAQ:MTSI)

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

MACOM reported revenues of $252.1 million, up 32.3% year on year. This print beat analysts’ expectations by 1%. Aside from that, it was a mixed quarter as it also logged a meaningful improvement in its inventory levels but a slight miss of analysts’ adjusted operating income estimates.

MACOM achieved the fastest revenue growth among its peers. The stock is down 9.4% since reporting and currently trades at $126.

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

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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