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 semiconductor manufacturing stocks, starting with IPG Photonics (NASDAQ: IPGP).

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.

Luckily, semiconductor manufacturing stocks have performed well with share prices up 22.3% on average since the latest earnings results.

Best Q2: IPG Photonics (NASDAQ: IPGP)

Both a designer and manufacturer of its products, IPG Photonics (NASDAQ: IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.

IPG Photonics reported revenues of $250.7 million, down 2.7% year on year. This print exceeded analysts’ expectations by 9.4%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.

“I am happy to report that we delivered second quarter results well above expectations. Our revenue improved sequentially, driven by modest demand recovery in general industrial and e-mobility markets. Excluding the impact of a divestiture, this was our first year-over-year revenue increase since 2022. We’re making progress on our strategy to drive profitable growth with initiatives that are already yielding results. This quarter, we saw higher revenue in medical, supported by a customer win earlier in the year, and reported strong growth in advanced applications. We are also launching a directed energy system for counter-UAV applications, which we believe will unlock significant value for our customers,” said Dr. Mark Gitin, Chief Executive Officer of IPG Photonics.

Interestingly, the stock is up 7% since reporting and currently trades at $83.03.

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

Amkor (NASDAQ: AMKR)

Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.

Amkor reported revenues of $1.51 billion, up 3.4% year on year, outperforming analysts’ expectations by 6.3%. The business had a very strong quarter with a beat of analysts’ EPS and adjusted operating income estimates.

The market seems happy with the results as the stock is up 33.2% since reporting. It currently trades at $28.30.

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

Weakest Q2: FormFactor (NASDAQ: FORM)

With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.

FormFactor reported revenues of $195.8 million, flat year on year, exceeding analysts’ expectations by 3.4%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.

Interestingly, the stock is up 5.3% since the results and currently trades at $36.25.

Read our full analysis of FormFactor’s results here.

KLA Corporation (NASDAQ: KLAC)

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

KLA Corporation reported revenues of $3.17 billion, up 23.6% year on year. This number topped analysts’ expectations by 3%. It was a strong quarter as it also produced a beat of analysts’ EPS and adjusted operating income estimates.

The stock is up 18.7% since reporting and currently trades at $1,044.

Read our full, actionable report on KLA Corporation here, it’s free.

Nova (NASDAQ: NVMI)

Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Nova reported revenues of $220 million, up 40.2% year on year. This result beat analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

The stock is up 20.2% since reporting and currently trades at $309.97.

Read our full, actionable report on Nova 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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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