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A Look Back at Processors and Graphics Chips Stocks' Q3 Earnings: Intel (NASDAQ:INTC) Vs The Rest Of The Pack

INTC Cover Image
A Look Back at Processors and Graphics Chips Stocks' Q3 Earnings: Intel (NASDAQ:INTC) Vs The Rest Of The Pack

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the processors and graphics chips stocks, including Intel (NASDAQ:INTC) 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 Q3; on average, revenues beat analyst consensus estimates by 3.4% while next quarter's revenue guidance was in line with 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 19.3% on average since the previous earnings results.

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 $14.16 billion, down 7.7% year on year, topping analyst expectations by 4.1%. It was a very good quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its operating margin.

Intel Total Revenue
Intel Total Revenue

The stock is up 44.9% since the results and currently trades at $47.05.

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

Best Q3: 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 $18.12 billion, up 206% year on year, outperforming analyst expectations by 12.5%. 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 Total Revenue
Nvidia Total Revenue

Nvidia achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 9.9% since the results and currently trades at $549.16.

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

Slowest Q3: 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 41.1% year on year, falling short of analyst expectations by 0.3%. It was a decent quarter for the company, with a significant improvement in its gross margin but an increase in its inventory levels.

SMART had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is up 10% since the results and currently trades at $20.33.

Read our full analysis of SMART's results here.

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 $9.30 billion, up 4.3% year on year, in line with analyst expectations. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations and a decline in its gross margin.

The stock is up 20.1% since the results and currently trades at $1,105.

Read our full, actionable report on Broadcom 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 $192.2 million, up 11.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter. On the other hand, Lattice Semiconductor's revenue and EPS outperformed Wall Street's estimates, even if the beats weren't too big.

The stock is down 3.2% since the results and currently trades at $65.1.

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

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The author has no position in any of the stocks mentioned

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