Processors and Graphics Chips Stocks Q4 Recap: Benchmarking Broadcom (NASDAQ:AVGO)
As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the processors and graphics chips stocks, including Broadcom (NASDAQ:AVGO) 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 solid Q4; on average, revenues beat analyst consensus estimates by 2.1% while next quarter's revenue guidance was 3.9% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but processors and graphics chips stocks held their ground better than others, with the share prices up 8.2% on average since the previous earnings results.
Broadcom (NASDAQ:AVGO)
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate that spans wireless, networking, data storage, and industrial end markets along with an infrastructure software business focused on mainframes and cybersecurity.
Broadcom reported revenues of $11.96 billion, up 34.2% year on year, topping analyst expectations by 2.1%. It was a strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts' EPS estimates.
The stock is down 5.5% since the results and currently trades at $1,328.06.
Best Q4: Nvidia (NASDAQ:NVDA)
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
Nvidia reported revenues of $22.1 billion, up 265% year on year, outperforming analyst expectations by 7.6%. It was a stunning quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
Nvidia achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 28% since the results and currently trades at $863.65.
Is now the time to buy Nvidia? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $170.6 million, down 3% year on year, falling short of analyst expectations by 3.3%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
Lattice Semiconductor had the weakest performance against analyst estimates in the group. The stock is up 5% since the results and currently trades at $74.55.
Read our full analysis of Lattice Semiconductor's results here.
AMD (NASDAQ:AMD)
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices or AMD (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
AMD reported revenues of $6.17 billion, up 10.2% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' EPS estimates.
The stock is down 2.4% since the results and currently trades at $167.79.
Read our full, actionable report on AMD here, it's free.
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 $255 million, up 2.5% year on year, falling short of analyst expectations by 0.7%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.
The stock is up 0.8% since the results and currently trades at $26.16.
Read our full, actionable report on Allegro MicroSystems here, it's free.
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