The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Broadcom (NASDAQ:AVGO) and the rest of the processors and graphics chips stocks fared in Q1.

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 mixed Q1; on average, revenues beat analyst consensus estimates by 2.66%, while on average next quarter revenue guidance was 5.74% above consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again , but processors and graphics chips stocks held their ground better than others, with the share prices up 13.2% since the previous earnings results, on average.

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 $8.73 billion, up 7.77% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in inventory levels but a decline in gross margin.

"Broadcom's second quarter results were driven by demand for next generation technologies from hyperscale, while enterprise and service providers continued to sustain," said Hock Tan, President and CEO of

The stock is down 0.25% since the results and currently trades at $787.4.

Is now the time to buy Broadcom? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $269.4 million, up 34.5% year on year, beating analyst expectations by 1.67%. It was a very strong quarter for the company, with a significant improvement in gross margin.

Allegro MicroSystems achieved the fastest revenue growth among its peers. The stock is up 4.76% since the results and currently trades at $39.42.

Is now the time to buy Allegro MicroSystems? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $5.35 billion, down 9.07% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in operating margin.

The stock is up 38.8% since the results and currently trades at $124.8.

Read our full analysis of AMD's results here.

SMART (NASDAQ:SGH)

Based in the US, SMART Global Holdings (NASDAQ:SGH) is a diversified semiconductor company offering memory, digital, and LED products.

SMART reported revenues of $429.2 million, down 4.45% year on year, missing analyst expectations by 1.34%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.

SMART had the weakest performance against analyst estimates among the peers. The stock is up 39% since the results and currently trades at $23.01.

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

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 $184.3 million, up 22.5% year on year, beating analyst expectations by 3.36%. It was a strong quarter for the company, with a significant improvement in operating margin and revenue guidance for the next quarter above analysts' estimates.

The stock is down 1.08% since the results and currently trades at $80.71.

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

The author has no position in any of the stocks mentioned