Looking back on processors and graphics chips stocks' Q4 earnings, we examine this quarter's best and worst performers, including Allegro MicroSystems (NASDAQ:ALGM) 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. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but processors and graphics chips stocks held their ground better than others, with the share prices up 9.6% on average since the previous earnings results.

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.

“We delivered third-quarter net sales of $255 million, up 2% year-over-year, driven by continued strength in Automotive, which grew 18% year-over-year. Non-GAAP EPS was $0.32, 10% above the midpoint of guidance on in-line sales, and free cash flow increased $27 million, or more than 170% sequentially,” said Vineet Nargolwala, President and CEO of Allegro.

The stock is down 1.1% since the results and currently trades at $25.66.

Read our full report on Allegro MicroSystems here, it's free.

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 meaningful revenue beat, strong gross margin improvement, and EPS outperformance vs. Wall Street's estimates. Guidance for the next quarter was also good, with revenue, gross margin, and implied operating profit coming in ahead of expectations.

Nvidia pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 33.7% since the results and currently trades at $902.39.

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 10.4% since the results and currently trades at $78.34.

Read our full analysis of Lattice Semiconductor's results here.

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 the leading manufacturer of computer processors and graphics chips.

Intel reported revenues of $15.41 billion, up 9.7% year on year, surpassing analyst expectations by 1.5%. It was a mixed quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates. However, its revenue guidance for next quarter missed analysts' expectations.

The stock is down 10.2% since the results and currently trades at $44.55.

Read our full, actionable report on Intel here, it's free.

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 $9.94 billion, up 5% year on year, surpassing analyst expectations by 4.4%. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.

The stock is up 14.6% since the results and currently trades at $170.17.

Read our full, actionable report on Qualcomm here, it's free.

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