Looking back on semiconductor manufacturing stocks' Q4 earnings, we examine this quarter's best and worst performers, including KLA Corporation (NASDAQ:KLAC) and its peers.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.4%. while next quarter's revenue guidance was 5.6% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and semiconductor manufacturing stocks have held roughly steady amidst all this, with share prices up 3.8% on average since the previous earnings results.

KLA Corporation (NASDAQ:KLAC)

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

KLA Corporation reported revenues of $2.49 billion, down 16.7% year on year, topping analyst expectations by 1.1%. It was a mixed quarter for the company, with a solid beat of analysts' EPS estimates but underwhelming revenue guidance for the next quarter.

"KLA's December quarter results were ahead of our expectations and capped a solid year that included strong relative margins and free cash flow growth despite a persistently soft market," said Rick Wallace, president and CEO, KLA Corporation.

The stock is up 7.5% since the results and currently trades at $690.

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

Best Q4: Nova (NASDAQ:NVMI)

Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Nova reported revenues of $134.2 million, down 11.3% year on year, outperforming analyst expectations by 4.8%. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its inventory levels.

The stock is up 11.1% since the results and currently trades at $174.99.

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

Weakest Q4: Kulicke and Soffa (NASDAQ:KLIC)

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $171.2 million, down 2.9% year on year, falling short of analyst expectations by 0.5%. 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 6.5% since the results and currently trades at $47.01.

Read our full analysis of Kulicke and Soffa's results here.

IPG Photonics (NASDAQ:IPGP)

Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.

IPG Photonics reported revenues of $298.9 million, down 10.4% year on year, surpassing analyst expectations by 4.3%. It was a very strong quarter for the company, with a significant improvement in its inventory levels.

The stock is down 15.6% since the results and currently trades at $87.47.

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

Entegris (NASDAQ:ENTG)

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Entegris reported revenues of $812.3 million, down 14.1% year on year, surpassing analyst expectations by 4%. It was a mixed quarter for the company, with underwhelming revenue and EPS guidance for the next quarter.

The stock is up 6% since the results and currently trades at $131.65.

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

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