Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Lattice Semiconductor (NASDAQ:LSCC) and the best and worst performers in the processors and graphics chips industry.
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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 0.5% below.
Luckily, processors and graphics chips stocks have performed well with share prices up 14.5% on average since the latest earnings results.
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 $124 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an improvement in its inventory levels.
Ford Tamer, Chief Executive Officer, said, "We delivered another strong quarter, with broad-based growth across key financial metrics and record design wins. Communications and computing markets remain solid, with normalized channel inventory and continued strength expected into 2026. Industrial and automotive markets are recovering as anticipated, with channel inventory levels showing signs of further improvement. Looking ahead, we're excited about growth driven by major design wins alongside AI accelerators in Cloud datacenter, wired communications, industrial robotics, ADAS, and other far-edge AI applications."
Interestingly, the stock is up 49% since reporting and currently trades at $72.65.
Is now the time to buy Lattice Semiconductor? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $818.8 million, down 7.7% year on year, outperforming analysts’ expectations by 5.3%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.
The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $88.59.
Is now the time to buy Qorvo? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $12.86 billion, flat year on year, exceeding analysts’ expectations by 7.8%. Still, it was a mixed quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 64.8% since the results and currently trades at $37.27.
Read our full analysis of Intel’s results here.
Qualcomm (NASDAQ:QCOM)
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 $10.37 billion, up 10.3% year on year. This number met analysts’ expectations. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
The stock is up 1.8% since reporting and currently trades at $161.78.
Read our full, actionable report on Qualcomm here, it’s free for active Edge members.
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 $203.4 million, up 21.9% year on year. This print surpassed analysts’ expectations by 2.8%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
The stock is down 17.8% since reporting and currently trades at $27.84.
Read our full, actionable report on Allegro MicroSystems here, it’s free for active Edge members.
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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