Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Qorvo (NASDAQ: QRVO) 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 9 processors and graphics chips stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 8.6% on average since the latest earnings results.
Best Q2: Qorvo (NASDAQ: QRVO)
Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.
Qorvo reported revenues of $818.8 million, down 7.7% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, “The Qorvo team delivered a strong fiscal 2026 first quarter. We are undertaking a broad set of initiatives to structurally enhance profitability, and we are already seeing the positive effects of these strategic actions. In the September quarter, we expect sequential growth and margin expansion to be supported by increases in Qorvo content and unit volumes in large customer programs.”
Qorvo delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 1.8% since reporting and currently trades at $83.
Is now the time to buy Qorvo? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $7.69 billion, up 31.7% year on year, outperforming analysts’ expectations by 3.4%. The business had a strong quarter with a significant improvement in its inventory levels and revenue guidance for next quarter beating analysts’ expectations.
The market seems happy with the results as the stock is up 23.4% since reporting. It currently trades at $215.18.
Is now the time to buy AMD? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Intel (NASDAQ: INTC)
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Intel reported revenues of $12.86 billion, flat year on year, exceeding analysts’ expectations by 7.8%. Still, it was a mixed quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 57.8% since the results and currently trades at $35.67.
Read our full analysis of Intel’s results here.
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 $10.37 billion, up 10.3% year on year. This print was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
The stock is down 2.9% since reporting and currently trades at $154.40.
Read our full, actionable report on Qualcomm here, it’s free for active Edge members.
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 $46.74 billion, up 55.6% year on year. This result met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but an increase in its inventory levels.
Nvidia achieved the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $183.20.
Read our full, actionable report on Nvidia 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.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
