Q4 Earnings Roundup: Qualcomm (NASDAQ:QCOM) And The Rest Of The Processors and Graphics Chips Segment
Let's dig into the relative performance of Qualcomm (NASDAQ:QCOM) and its peers as we unravel the now-completed Q4 processors and graphics chips earnings season.
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. Inflation (despite slowing) has investors prioritizing near-term cash flows, but processors and graphics chips stocks held their ground better than others, with the share prices up 8.5% on average since the previous earnings results.
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, topping 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 15.1% since the results and currently trades at $170.94.
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 pulled off 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.
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 $274.2 million, down 30% year on year, falling short of analyst expectations by 0.3%. It was a mixed quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.
SMART had the slowest revenue growth among its peers. The stock is up 40% since the results and currently trades at $25.88.
Read our full, actionable report on SMART here, it's free.
Qorvo (NASDAQ:QRVO)
Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.
Qorvo reported revenues of $1.07 billion, up 44.5% year on year, surpassing analyst expectations by 7.1%. It was a very 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 15.6% since the results and currently trades at $115.28.
Read our full, actionable report on Qorvo here, it's free.
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