Looking back on processors and graphics chips stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Broadcom (NASDAQ: AVGO) 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 8 processors and graphics chips stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18% since the latest earnings results.
Broadcom (NASDAQ: AVGO)
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Broadcom reported revenues of $14.92 billion, up 24.7% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
"Broadcom's record first quarter revenue and adjusted EBITDA were driven by both AI semiconductor solutions and infrastructure software. Q1 AI revenue grew 77% year-over-year to $4.1 billion and infrastructure software revenue grew 47% year-over-year to $6.7 billion," said Hock Tan, President and CEO of
The stock is down 3.3% since reporting and currently trades at $173.50.
Best Q4: 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 $11.67 billion, up 17.5% year on year, outperforming analysts’ expectations by 6.7%. The business had an exceptional quarter with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.
Qualcomm pulled off the biggest analyst estimates beat among its peers. The stock is down 22.7% since reporting. It currently trades at $135.99.
Is now the time to buy Qualcomm? Access our full analysis of the earnings results here, it’s free.
Slowest 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 $117.4 million, down 31.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Lattice Semiconductor delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 21.6% since the results and currently trades at $42.65.
Read our full analysis of Lattice Semiconductor’s results here.
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 $39.33 billion, up 77.9% year on year. This print surpassed analysts’ expectations by 2.5%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ EPS estimates but an increase in its inventory levels.
Nvidia delivered the fastest revenue growth among its peers. The stock is down 19.3% since reporting and currently trades at $106.12.
Read our full, actionable report on Nvidia here, it’s free.
AMD (NASDAQ: AMD)
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
AMD reported revenues of $7.66 billion, up 24.2% year on year. This number beat analysts’ expectations by 1.5%. Zooming out, it was a decent quarter as it also produced a meaningful improvement in its inventory levels.
The stock is down 25.1% since reporting and currently trades at $89.61.
Read our full, actionable report on AMD here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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