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As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the processors and graphics chips industry, 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 very strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.4% since the latest earnings results.
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 $993 million, up 8.4% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with a 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, "Qorvo's December quarterly revenue primarily reflects strength at our largest customer. Each of our operating segments grew revenue year-over-year, with notable strength in automotive components, consumer and enterprise Wi-Fi, D&A, base station, and power management. Looking forward, our March quarterly outlook reflects the seasonal decline at our largest customer, the ongoing strategic resizing of our Android business, and continued strength in HPA."
Unsurprisingly, the stock is down 6.4% since reporting and currently trades at $77.52.
Is now the time to buy Qorvo? Access our full analysis of the earnings results here, it’s free.
Based in the US, Penguin Solutions (NASDAQ:PENG) is a diversified semiconductor company offering memory, digital, and LED products.
Penguin Solutions reported revenues of $343.1 million, flat year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.2% since reporting. It currently trades at $18.70.
Is now the time to buy Penguin Solutions? Access our full analysis of the earnings results here, it’s free.
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Qualcomm reported revenues of $12.25 billion, up 5% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a significant improvement in its inventory levels but revenue guidance for next quarter missing analysts’ expectations significantly.
Qualcomm delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.7% since the results and currently trades at $137.43.
Read our full analysis of Qualcomm’s results here.
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 $13.67 billion, down 4.1% year on year. This print surpassed analysts’ expectations by 2%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Intel had the slowest revenue growth among its peers. The stock is down 16.9% since reporting and currently trades at $45.13.
Read our full, actionable report on Intel here, it’s free.
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Broadcom reported revenues of $19.31 billion, up 29.5% year on year. This result topped analysts’ expectations by 0.5%. It was a strong quarter as it also produced revenue guidance for next quarter exceeding analysts’ expectations and a narrow beat of analysts’ adjusted operating income estimates.
The stock is up 8.1% since reporting and currently trades at $343.26.
Read our full, actionable report on Broadcom here, it’s free.
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