Semiconductor Rally Continues- 3 Stocks In The Spotlight Ahead Of Earnings

Semiconductor stocks extended their rally in 2026, with the PHLX Semiconductor Sector (NASDAQ:SOX) index up 10.14% year-to-date, and reinforcing Cantor Fitzgerald’s view that the sector remains a must-own.

Cantor’s Semiconductor analyst C.J. Muse evaluates the outlook for the top chip stocks, Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM), and Microchip Technology (NASDAQ:MCHP) ahead of their results this week.

AMD Poised to Beat Q4, Raise Outlook

AMD is expected to slightly beat December-quarter results and raise March-quarter guidance, benefiting from Intel Corp's (NASDAQ:INTC) wafer transition issues. Strength should come from data center CPUs and GPUs, driven by agentic AI, server demand, and upcoming MI 400-series launches. While client unit volumes may be constrained by supply, higher average selling prices in both client and server segments should support performance, Muse noted.

AMD will report quarterly earnings on Tuesday, with analysts expecting EPS of $1.24. Last quarter, AMD beat EPS estimates by $0.11, driving a 2.51% rise in shares the following day.

Benzinga’s Edge Rankings place AMD in the 92nd percentile for momentum and the 86th percentile for quality, reflecting its strong performance. Benzinga's screener allows you to compare AMD’s performance with its peers.  

Price Action: Over the past year, AMD stock surged 115.52%, as per data from Benzinga Pro. On Monday, the stock rose 4.03% to close at $246.27.

QCOM 2026 Outlook May Weaken

QCOM is expected to beat estimates in the December quarter, but its outlook is weakening. The company's March-quarter guidance is likely to come in slightly below consensus, with June guidance well below expectations, Muse noted. Headwinds include Apple (NASDAQ:AAPL) and Samsung shifting more modem production in-house, component shortages (DRAM, NAND, substrates), and an anticipated 10%+ decline in China handset volumes in calendar year 2026. As a result, the analyst expects a significant reset to Qualcomm's forecasts: handset revenues down 20%, QCT revenues down 10%, and total revenues down 9% versus consensus.

QCOM will report quarterly earnings on February 4, Wednesday.

Benzinga’s Edge Rankings place QCOM in the 58th percentile for quality and the 19th percentile for momentum, reflecting mixed performance. Benzinga's screener allows you to compare QCOM’s performance with its peers.  

Price Action: Over the past year, QCOM stock declined 10.34%, as per data from Benzinga Pro. On Monday, the stock rose 0.69% to close at $152.63.

MCHP Set To Outperform Analog Peers

Microchip is expected to modestly beat earnings and guidance after two positive pre-announcements, with performance running above seasonal trends. Muse said it remains the preferred analog stock play due to strong industrial exposure, data center product ramp-ups, and a leading gross margin expansion story, positioning it to outperform the broader analog market through 2026.

In early January, Microchip shares rose after the company raised its fiscal Q3 2026 revenue outlook to about $1.185 billion, topping its earlier guidance range of $1.109–$1.149 billion and a prior update that had forecast results at the high end of that range.

Microchip will report quarterly earnings on February 5, Thursday.

Benzinga’s Edge Rankings place Microchip in the 79th percentile for momentum. Benzinga's screener allows you to compare Microchip’s performance with its peers.  

Price Action: Over the past year, Microchip stock climbed 49.41%, as per data from Benzinga Pro. On Monday, the stock climbed 2.85% to close at $78.08.

Intel, Micron Top Estimates On Earnings

Intel posted fourth-quarter revenue of $13.67 billion, surpassing Wall Street expectations of $13.37 billion. Adjusted earnings came in at 15 cents per share, well ahead of the eight-cent consensus, even as total revenue declined 4% year over year.

Micron, meanwhile, reported first-quarter revenue of $13.64 billion, beating analyst forecasts of $12.83 billion. The company delivered adjusted earnings of $4.78 per share, exceeding estimates of $3.95. Revenue rose roughly 20.5% from a year earlier, while operating cash flow jumped to $8.41 billion, up from $5.73 billion in the previous quarter and $3.24 billion in the year-ago period. Micron also generated $3.9 billion in adjusted free cash flow during the quarter.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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