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 analog semiconductors stocks, starting with Monolithic Power Systems (NASDAQ: MPWR).
Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.
The 15 analog semiconductors stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.5% on average since the latest earnings results.
Monolithic Power Systems (NASDAQ: MPWR)
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Monolithic Power Systems reported revenues of $664.6 million, up 31% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ adjusted operating income estimates.
“Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.
Interestingly, the stock is up 37.6% since reporting and currently trades at $980.38.
Best Q2: Impinj (NASDAQ: PI)
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.
Impinj reported revenues of $97.89 million, down 4.5% year on year, outperforming analysts’ expectations by 4.3%. The business had a stunning quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 60.7% since reporting. It currently trades at $196.82.
Is now the time to buy Impinj? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Himax (NASDAQ: HIMX)
Taiwan-based Himax Technologies (NASDAQ: HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.
Himax reported revenues of $214.8 million, down 10.4% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a softer quarter as it posted EPS in line with analysts’ estimates and an increase in its inventory levels.
Interestingly, the stock is up 3.9% since the results and currently trades at $8.98.
Read our full analysis of Himax’s results here.
Skyworks Solutions (NASDAQ: SWKS)
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Skyworks Solutions reported revenues of $965 million, up 6.6% year on year. This print beat analysts’ expectations by 2.6%. Overall, it was an exceptional quarter as it also produced revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is up 8.4% since reporting and currently trades at $73.36.
Read our full, actionable report on Skyworks Solutions here, it’s free for active Edge members.
Vishay Intertechnology (NYSE: VSH)
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE: VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Vishay Intertechnology reported revenues of $762.3 million, up 2.8% year on year. This number met analysts’ expectations. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and revenue guidance for next quarter slightly missing analysts’ expectations.
Vishay Intertechnology had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $16.07.
Read our full, actionable report on Vishay Intertechnology here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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