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Semiconductor companies are likely to have witnessed strong performance in the September-end quarter, driven by solid demand. The industry is continuing its dream run so far this year, which is evident from its growing semiconductor sales. Per the latest report of the Semiconductor Industry Association (SIA), the global semiconductor sales soared 15.8% quarter over quarter to $208.4 billion in the third quarter of 2025.
Semiconductor players like nLight (LASR), Applied Optoelectronics (AAOI), Synaptics (SYNA), Nova Ltd. (NVMI) and Diodes (DIOD) are slated to report their financial results on Nov. 6.
Companies in the semiconductor industry are likely to have gained from the robust sales growth across a wide range of products, including microprocessors, microcontrollers, memory chips, RFID modules, power management ICs, digital signal processors, security authentication modules, optical chips, edge AI controllers, and advanced driver assistance systems, among others.
The companies in this space are expected to have benefited from the rise in microchip sales, driven by their growing demand by hyperscalers, cloud service providers, telecom, artificial intelligence, and data center customers who are dedicating a significant part of their capital expenditure to acquire more powerful chips. As these AI-based companies and hyperscalers proliferate, the semiconductor companies are likely to benefit from this growth.
Inventory normalization among industrial and automotive customers is expected to have driven sales, particularly due to the strength in the Chinese electric vehicle market. Semiconductor manufacturers are also likely to have benefited from increased sales and improved margins as easing inflation reduces pricing pressure in the to-be-reported quarter.
In light of these conditions, let’s examine the positioning of the following semiconductor companies ahead of their third-quarter earnings announcements on Nov. 6, and assess their ability to handle the current market challenges.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s delve deeper.
nLight is set to report third-quarter 2025 results. LASR has an Earnings ESP of 0.00% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for nLight’s third-quarter 2025 revenues is pegged at $62.49 million, which indicates an 11.3% increase from the year-ago quarter. The consensus estimate for earnings is pegged at 2 cents per share, indicating a robust improvement from the year-ago quarter’s loss of 8 cents.
nLight’s third-quarter 2025 performance is expected to have benefited from strong momentum in the Aerospace and Defense (A&D) end market. By leaning more on A&D, nLIGHT is tapping into areas like directed energy systems, missile defense, and laser sensing, all of which are long-term funding priorities for the Department of Defense (DoD). With defense programs benefiting from rising spending in the United States and among allied nations, A&D provides both visibility and durability to LASR’s revenue base.
In the second quarter, the A&D end market delivered record revenues of $40.7 million, up 49% year over year and accounting for 66% of total sales compared with 54% a year ago. Progress on the $171 million HELSI-2 high-energy laser program and solid execution across defense product shipments are expected to have supported top-line growth.
However, soft demand in commercial markets, particularly in industrial laser applications, is anticipated to have remained a drag on overall performance.
nLight price-eps-surprise | nLight Quote
Applied Optoelectronics is set to report third-quarter 2025 results. The stock has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Applied Optoelectronics’ third-quarter 2025 revenues is pegged at $119.91 million, which indicates an 84.1% increase from the year-ago quarter. The consensus estimate for the bottom line is pegged at a loss of 10 cents per share, narrower than the year-ago quarter’s loss of 21 cents.
Applied Optoelectronics’ third-quarter 2025 performance is expected to have benefited from strong momentum in both its Datacenter and Cable and Television (CATV) businesses. Increased demand for high-speed 100G and 400G optical transceivers, along with the ramp-up of shipments to a major hyperscale customer, is likely to have boosted the company’s top line in the to-be-reported quarter.
The company’s CATV segment, which is driven by steady demand for 1.8-gigahertz amplifiers, along with increasing adoption of its QuantumLink remote management software platform across multiple Multiple System Operator customers, is expected to have contributed positively in the to-be-reported quarter.
However, rising operating expenses, stemming from increased R&D and SG&A investments for new product qualifications and business expansion, are expected to have weighed on profitability in the third quarter.
Applied Optoelectronics, Inc. price-eps-surprise | Applied Optoelectronics, Inc. Quote
Diodes is set to report third-quarter 2025 results. It has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Diodes’ third-quarter 2025 revenues is pegged at $392.5 million, which indicates a 12.1% increase from the year-ago quarter. The consensus estimate for the bottom line is pegged at 38 cents per share, which implies a year-over-year decline of 11.6%.
Diodes Incorporated’s third-quarter 2025 results are expected to benefit from improving demand trends across key end markets. Strong momentum in AI-related computing applications and growing adoption of its PCIe packet switches and other high-speed interface solutions used in servers, data centers, and industrial systems is likely to have benefited the company’s prospects in the to-be-reported quarter.
Increased demand in the China EV market, supported by design wins in ADAS, infotainment, smart cockpit, and lighting applications, is expected to have contributed positively in the to-be-reported quarter.
However, unfavorable product mix and higher underloading costs at manufacturing facilities, along with continued inventory digestion in automotive and industrial markets may have limited the company’s overall growth in the to be reported quarter.
Diodes Incorporated price-eps-surprise | Diodes Incorporated Quote
Nova is set to report third-quarter 2025 results. It has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Nova’s bottom line is pegged at $2.12 per share, which implies a year-over-year increase of 21.8%.
Nova’s third-quarter 2025 performance is expected to have benefited from rising demand across logic, foundry and advanced packaging segments. The company’s expanding presence in gate-all-around architecture, backed by engagements with four leading customers, is likely to have contributed positively to the overall third-quarter performance.
Growing adoption of Nova’s metrology solutions amid rising process complexity and capacity build-outs in advanced nodes, DRAM and high-bandwidth memory is expected to have contributed positively in the to-be-reported quarter.
However, rising operating expenses, along with tariff-related headwinds, along with moderating demand from China are expected to have limited the company’s overall growth in the to-be-reported quarter.
Nova Ltd. price-eps-surprise | Nova Ltd. Quote
Synaptics is set to report first-quarter fiscal 2026 results. It has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Synaptics’s first-quarter fiscal 2026 revenues is pegged at $289.4 million, which indicates a 12.3% increase from the year-ago quarter. The consensus estimate for the bottom line is pegged at $1.06 per share, which implies a year-over-year increase of 30.9%.
Synaptics is expected to have benefited from strong momentum in its Core IoT business during the first quarter. Solid demand for the company’s wireless connectivity solutions, particularly the newly launched Wi-Fi 7 portfolio, is likely to have contributed to growth as design activity accelerated across IoT, enterprise, and automotive customers.
The ramp of Edge AI-enabled processors, along with growing customer interest in the new Astra platform co-developed with Google Research, is likely to have contributed positively to the company’s prospects.
However, continued softness in automotive demand and a modest recovery in enterprise PC markets, which still lack a broad refresh cycle, might have limited the company’s overall growth.
Synaptics Incorporated price-eps-surprise | Synaptics Incorporated Quote
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This article originally published on Zacks Investment Research (zacks.com).
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