Semiconductors Stocks Q3 Highlights: Seagate Technology (NASDAQ:STX)
As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the semiconductors stocks, including Seagate Technology (NASDAQ:STX) and its peers.
The semiconductor industry is driven by cyclical demand for advanced electronic products like smartphones, PCs, servers, and data storage. While analog chips serve as the building blocks of most electronic goods and equipment, processors (CPUs) and graphics chips serve as their brains. The growth of data and technologies like artificial intelligence, 5G, Internet of Things, and smart cars are creating the next wave of secular growth for the industry.
The 41 semiconductors stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 0.8% while next quarter's revenue guidance was 4.1% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but semiconductors stocks held their ground better than others, with the share prices up 17.3% on average since the previous earnings results.
Seagate Technology (NASDAQ:STX)
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Seagate Technology reported revenues of $1.45 billion, down 28.6% year on year, falling short of analyst expectations by 2.6%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.
“Seagate’s first quarter results were in line with our revised expectations. During a longer-than-typical downcycle we have prioritized financial discipline, positive free cash flow generation and execution on our HAMR product roadmap, which will extend our industry leadership in areal density and improve the total cost of ownership for our customers,” said Dave Mosley, Seagate’s chief executive officer.
The stock is up 23.7% since the results and currently trades at $83.
Read our full report on Seagate Technology here, it's free.
Best Q3: 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 $18.12 billion, up 206% year on year, outperforming analyst expectations by 12.5%. It was a stunning quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
Nvidia pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 13.1% since the results and currently trades at $565.51.
Is now the time to buy Nvidia? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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 $125.5 million, down 21.7% year on year, falling short of analyst expectations by 3.7%. 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 2.5% since the results and currently trades at $77.07.
Read our full analysis of Power Integrations's results here.
Micron Technology (NASDAQ:MU)
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Micron Technology reported revenues of $4.73 billion, up 15.7% year on year, surpassing analyst expectations by 1.6%. It was a decent quarter for the company, with a significant improvement in its inventory levels.
The stock is up 7.3% since the results and currently trades at $84.43.
Read our full, actionable report on Micron Technology here, it's free.
Applied Materials (NASDAQ:AMAT)
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Applied Materials reported revenues of $6.72 billion, down 0.4% year on year, surpassing analyst expectations by 3.4%. It was a strong quarter for the company, with an impressive beat of analysts' EPS and revenue estimates.
The stock is down 1% since the results and currently trades at $153.2.
Read our full, actionable report on Applied Materials 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.
The author has no position in any of the stocks mentioned
