Analog Semiconductors Stocks Q2 Recap: Benchmarking Texas Instruments (NASDAQ:TXN)

Let’s dig into the relative performance of Texas Instruments (NASDAQ:TXN) and its peers as we unravel the now-completed Q2 analog semiconductors earnings season.

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 1.2% below.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some analog semiconductors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.

Texas Instruments (NASDAQ:TXN)

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors.

Texas Instruments reported revenues of $3.82 billion, down 15.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a decline in its operating margin. In addition. its revenue guidance for the next quarter missed Wall Street's estimates.

Interestingly, the stock is up 2.4% since reporting and currently trades at $203.07.

Read our full report on Texas Instruments here, it’s free.

Best Q2: 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 $239.6 million, up 2% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a significant improvement in its gross margin.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $5.36.

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

Weakest Q2: Universal Display (NASDAQ:OLED)

Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.

Universal Display reported revenues of $158.5 million, up 8.1% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.

As expected, the stock is down 5.1% since the results and currently trades at $201.80.

Read our full analysis of Universal Display’s results here.

Microchip Technology (NASDAQ:MCHP)

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.

Microchip Technology reported revenues of $1.24 billion, down 45.8% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it recorded underwhelming revenue guidance for the next quarter and a decline in its operating margin.

Microchip Technology had the slowest revenue growth among its peers. The stock is down 8.1% since reporting and currently trades at $77.66.

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

MACOM (NASDAQ:MTSI)

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

MACOM reported revenues of $190.5 million, up 28.3% year on year. This print met analysts’ expectations. However, it was a slower quarter as it logged a decline in its gross margin and an increase in its inventory levels.

MACOM achieved the fastest revenue growth among its peers. The stock is down 4.5% since reporting and currently trades at $96.55.

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

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.