Processors and Graphics Chips Stocks Q4 In Review: AMD (NASDAQ:AMD) Vs Peers
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 Q4. Today we are looking at the processors and graphics chips stocks, starting with AMD (NASDAQ:AMD).
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. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but processors and graphics chips stocks held their ground better than others, with the share prices up 13.2% on average since the previous earnings results.
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 $6.17 billion, up 10.2% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' EPS estimates.
“We finished 2023 strong, with sequential and year-over-year revenue and earnings growth driven by record quarterly AMD Instinct GPU and EPYC CPU sales and higher AMD Ryzen processor sales,” said AMD Chair and CEO Dr. Lisa Su.
The stock is up 5.2% since the results and currently trades at $180.99.
Is now the time to buy AMD? Access our full analysis of the earnings results here, it's free.
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 meaningful revenue beat, strong gross margin improvement, and EPS outperformance vs. Wall Street's estimates. Guidance for the next quarter was also good, with revenue, gross margin, and implied operating profit coming in ahead of expectations.
Nvidia scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 41.9% since the results and currently trades at $957.41.
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 11.8% since the results and currently trades at $79.35.
Read our full analysis of Lattice Semiconductor's results here.
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, surpassing 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 13.1% since the results and currently trades at $168.03.
Read our full, actionable report on Qualcomm here, it's free.
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 decent quarter for the company, with an impressive beat of analysts' EPS estimates. While revenue missed by a small margin, full year revenue outlook was raised, which is a major positive.
SMART had the slowest revenue growth among its peers. The stock is up 43.1% since the results and currently trades at $26.45.
Read our full, actionable report on SMART here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
