Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Power Integrations (NASDAQ: POWI) and its peers.

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 Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.8% above.

Luckily, analog semiconductors stocks have performed well with share prices up 24.5% on average since the latest earnings results.

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 $105.5 million, up 15.1% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Unsurprisingly, the stock is down 8.8% since reporting and currently trades at $53.83.

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

Best Q1: 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 $215.1 million, up 3.7% year on year, outperforming analysts’ expectations by 2.4%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 26% since reporting. It currently trades at $9.40.

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

Weakest Q1: 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 $715.2 million, down 4.2% year on year, falling short of analysts’ expectations by 0.6%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue guidance for next quarter meeting analysts’ expectations.

Vishay Intertechnology delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 30.1% since the results and currently trades at $17.47.

Read our full analysis of Vishay Intertechnology’s results here.

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 $637.6 million, up 39.2% year on year. This result topped analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also produced a narrow beat of analysts’ EPS estimates but an increase in its inventory levels.

Monolithic Power Systems delivered the fastest revenue growth among its peers. The stock is up 19.8% since reporting and currently trades at $720.80.

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

onsemi (NASDAQ: ON)

Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

onsemi reported revenues of $1.45 billion, down 22.4% year on year. This number beat analysts’ expectations by 3.1%. It was an exceptional quarter as it also produced a significant improvement in its inventory levels and a solid beat of analysts’ EPS estimates.

The stock is up 41% since reporting and currently trades at $59.10.

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

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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