A Look Back at Processors and Graphics Chips Stocks' Q2 Earnings: Lattice Semiconductor (NASDAQ:LSCC) Vs The Rest Of The Pack
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the processors and graphics chips stocks, starting with Lattice Semiconductor (NASDAQ:LSCC).
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 Q2; on average, revenues beat analyst consensus estimates by 4%, while on average next quarter revenue guidance was 3.35% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and processors and graphics chips stocks have not been spared, with share prices down 14.7% since the previous earnings results, on average.
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 $190.1 million, up 17.8% year on year, beating analyst expectations by 1.47%. It was a decent quarter for the company, with a significant improvement in its inventory levels. While next quarter's revenue guidance was roughly in line with Consensus expectations, gross margin and non-GAAP operating profit guidance were slightly ahead.
Jim Anderson, president and CEO, said, "We continued to grow both revenue and profitability in Q2 2023 on a year-over-year basis, with revenue increasing 18%, and net income on a GAAP basis growing 14% and 23% on a non-GAAP basis. We’re driving the largest product portfolio expansion in the Company’s history, which continues to create strong customer momentum. While we’re not immune to macro-economic challenges impacting the industry, we are well positioned for long-term growth in our core markets. "
The stock is down 8.24% since the results and currently trades at $83.55.
Is now the time to buy Lattice Semiconductor? Access our full analysis of the earnings results here, it's free.
Best Q2: 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 $13.5 billion, up 101% year on year, beating analyst expectations by 21.9%. It was an incredible quarter for the company, with beats across nearly every key metric. Nvidia's revenue guidance for the next quarter also blew past analysts' expectations.
Nvidia achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is down 8.33% since the results and currently trades at $432.06.
Is now the time to buy Nvidia? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $5.36 billion, down 18.2% 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 its operating margin.
The stock is down 13.5% since the results and currently trades at $101.77.
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 $12.9 billion, down 15.5% year on year, beating analyst expectations by 6.69%. It was a solid quarter for the company, with a significant improvement in its inventory levels. Additionally, next quarter's revenue and EPS guidance both slightly exceeded Consensus expectations.
The stock is up 5.32% since the results and currently trades at $36.41.
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 $278.3 million, up 27.8% year on year, beating analyst expectations by 1.84%. It was a decent quarter for the company, with a significant improvement in its operating margin. On the other hand, its inventory levels materially increased.
The stock is down 37.4% since the results and currently trades at $32.32.
The author has no position in any of the stocks mentioned