The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how analog semiconductors stocks fared in Q2, starting with MACOM (NASDAQ: MTSI).

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 satisfactory 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. On average, they are relatively unchanged since the latest earnings results.

MACOM (NASDAQ: MTSI)

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

MACOM reported revenues of $252.1 million, up 32.3% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with a meaningful improvement in its inventory levels but a slight miss of analysts’ adjusted operating income estimates.

“Our team did a great job this quarter,” said Stephen G. Daly, President and Chief Executive Officer, MACOM.

MACOM pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 53.9% since reporting and currently trades at $133.50.

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

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 an exceptional 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 53.9% since reporting. It currently trades at $188.49.

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

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.

As expected, the stock is down 2.8% since the results and currently trades at $8.40.

Read our full analysis of Himax’s results here.

Analog Devices (NASDAQ: ADI)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Analog Devices reported revenues of $2.88 billion, up 24.6% year on year. This result beat analysts’ expectations by 4.2%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

The stock is up 6.4% since reporting and currently trades at $245.43.

Read our full, actionable report on Analog Devices here, it’s free.

Power Integrations (NASDAQ: POWI)

A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ: POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.

Power Integrations reported revenues of $115.9 million, up 9.1% year on year. This number surpassed analysts’ expectations by 0.8%. Taking a step back, it was a satisfactory quarter as it also logged a significant improvement in its inventory levels but revenue guidance for next quarter meeting analysts’ expectations.

The stock is down 3.9% since reporting and currently trades at $45.62.

Read our full, actionable report on Power Integrations here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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