Winners And Losers Of Q3: Lam Research (NASDAQ:LRCX) Vs The Rest Of The Semiconductor Manufacturing Stocks

Let's dig into the relative performance of Lam Research (NASDAQ:LRCX) and its peers as we unravel the now-completed Q3 semiconductor manufacturing earnings season.

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 mixed Q3; on average, revenues beat analyst consensus estimates by 0.6% while next quarter's revenue guidance was 3.9% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 20.7% on average since the previous earnings results.

Lam Research (NASDAQ:LRCX)

Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.

Lam Research reported revenues of $3.48 billion, down 31.4% year on year, topping analyst expectations by 1.9%. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its inventory levels.

"Lam continues to deliver strong results despite a cyclically soft year for wafer fabrication equipment spending," said Tim Archer, Lam Research's President and Chief Executive Officer.

Lam Research delivered the slowest revenue growth of the whole group. The stock is up 16.3% since the results and currently trades at $747.29.

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

Best Q3: Nova (NASDAQ:NVMI)

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

Nova reported revenues of $128.8 million, down 10.5% year on year, outperforming analyst expectations by 4.6%. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.

Nova pulled off the biggest analyst estimates beat among its peers. The stock is up 29.1% since the results and currently trades at $131.23.

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

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 $301.4 million, down 13.6% year on year, falling short of analyst expectations by 4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

The stock is up 23.6% since the results and currently trades at $103.21.

Read our full analysis of IPG Photonics's results here.

Entegris (NASDAQ:ENTG)

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Entegris reported revenues of $888.2 million, down 10.6% year on year, falling short of analyst expectations by 0.4%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.

The stock is up 27.1% since the results and currently trades at $112.97.

Read our full, actionable report on Entegris here, it's free.

Photronics (NASDAQ:PLAB)

Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Photronics reported revenues of $227.5 million, up 8.2% year on year, surpassing analyst expectations by 1.6%. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.

The stock is up 36.6% since the results and currently trades at $29.55.

Read our full, actionable report on Photronics here, it's free.

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The author has no position in any of the stocks mentioned