The first-quarter earnings season for processor and graphics chip stocks has come to a close, with companies like Broadcom (AVGO) and others in the industry showing mixed results. Demand for CPUs and graphics chips continues to be driven by trends related to 5G, the Internet of Things, autonomous driving, and high-performance computing in data centers.
Broadcom, a semiconductor conglomerate with a focus on various end markets, reported revenue of $12.49 billion, beating analyst expectations by 4%. While the company saw improvements in its inventory levels, it fell short of analysts’ EPS estimates. The stock has risen 19.1% since the results.
Nvidia, a leading designer of chips used in gaming, PCs, data centers, and more, had an exceptional quarter with revenue of $26.04 billion, a 262% year-over-year increase. The company beat analyst expectations by 6.1% and saw significant improvements in its gross margin. The stock has risen 40% since the results.
On the other hand, Lattice Semiconductor, specializing in customer-programmable chips, reported revenue of $140.8 million, a 23.6% decline year-over-year. The company had disappointing revenue guidance for the next quarter and a decline in its operating margin. The stock is down 20.7% since the results.
Qualcomm, known for its wireless technology chips, posted revenue of $9.39 billion, up 1.2% year-over-year, in line with analyst expectations. The company beat analysts’ EPS estimates but saw an increase in inventory levels.
Intel, a leading manufacturer of computer processors and graphics chips, reported revenue of $12.72 billion, up 8.6% year-over-year, missing analyst expectations by 0.4%. The company saw improvements in its gross margin but had disappointing revenue guidance for the next quarter. The stock is down 13.8% since the results.
Overall, processor and graphics chip stocks had a strong first quarter, with revenue beating analyst consensus estimates on average. However, revenue guidance for the next quarter was slightly below consensus. Stock performance has been stable, with prices rising 4.5% on average from previous earnings results.
As the industry continues to evolve with technological advancements like AI, machine learning, and 5G, investors will be closely watching how companies like Broadcom, Nvidia, Lattice Semiconductor, Qualcomm, and Intel navigate these trends in the coming quarters.
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