Press Release: Penguin Solutions Expands Smart Modular Ddr5 Sodimm Memory Portfolio With New 64Gb Ddr5-6400 Ecc Csodimm For Next-Gen Hpc

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at processors and graphics chips stocks, starting with Qorvo .

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 8 processors and graphics chips stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.1% since the latest earnings results.

Best Q3: Qorvo

Formed by the merger of TriQuint and RF Micro Devices, Qorvo 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 $1.06 billion, up 1.1% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was an exceptional quarter for the company with a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “In the September quarter, ACG supported our largest customer’s smartphone ramp while continuing to serve Android’s premium and flagship tiers. In HPA, we grew our D&A and infrastructure businesses while supporting a recently launched smartwatch with our power management ICs. In CSG, we consolidated our organizational structure to improve profitability and prioritize opportunities in automotive, industrial, enterprise, and other markets. In the December quarter, we expect year-over-year revenue growth and margin expansion, supported by strategic customers in mobile and D&A markets."

Qorvo delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 7% since reporting and currently trades at $88.18.

Is now the time to buy Qorvo? Access our full analysis of the earnings results here, it’s free for active Edge members.

Qualcomm

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm 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 $11.27 billion, up 10% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $171.01.

Is now the time to buy Qualcomm? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Allegro MicroSystems

The result of a spinoff from Sanken in Japan, Allegro MicroSystems is a designer of power management chips and distance sensors used in electric vehicles and data centers.

Allegro MicroSystems reported revenues of $214.3 million, up 14.4% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a mixed quarter as it posted EPS in line with analysts’ estimates.

As expected, the stock is down 15.1% since the results and currently trades at $26.09.

Read our full analysis of Allegro MicroSystems’s results here.

Penguin Solutions

Based in the US, Penguin Solutions is a diversified semiconductor company offering memory, digital, and LED products.

Penguin Solutions reported revenues of $337.9 million, up 8.6% year on year. This number missed analysts’ expectations by 1.3%. More broadly, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

Penguin Solutions had the weakest performance against analyst estimates among its peers. The stock is down 23.3% since reporting and currently trades at $20.80.

Read our full, actionable report on Penguin Solutions here, it’s free for active Edge members.

AMD

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

AMD reported revenues of $9.25 billion, up 35.6% year on year. This result surpassed analysts’ expectations by 5.6%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter beating analysts’ expectations.

AMD scored the biggest analyst estimates beat among its peers. The stock is down 13.7% since reporting and currently trades at $215.80.

Read our full, actionable report on AMD here, it’s free for active Edge members.

What Happened?

A number of stocks fell in the morning session after concerns regarding lofty artificial intelligence valuations triggered a pullback in the technology sector. 

Nvidia slid 3% ahead of its earnings report, dragging down fellow "Magnificent Seven" peers despite a major partnership announcement with Anthropic, as investors increasingly question the durability of the AI rally.Market sentiment was further dampened by Bitcoin dropping below $90,000, signaling reduced risk appetite, and growing anxiety that the Federal Reserve may pause rate cuts in December, with the implied probability of a cut falling to roughly 50%. 

Adding to the weakness, Home Depot shares declined following an earnings miss and a cut to its full-year outlook. This combination of continued de-risking and valuation skepticism put the S&P 500 on pace for its fourth consecutive daily decline.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Semiconductor Manufacturing company Marvell Technology fell 4.6%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free for active Edge members.
• Memory Semiconductors company Western Digital fell 6.3%. Is now the time to buy Western Digital? Access our full analysis report here, it’s free for active Edge members.
• Memory Semiconductors company Seagate Technology fell 1.8%. Is now the time to buy Seagate Technology? Access our full analysis report here, it’s free for active Edge members.
• Processors and Graphics Chips company Penguin Solutions fell 3.2%. Is now the time to buy Penguin Solutions? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Applied Materials fell 2.8%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Western Digital (WDC)

Western Digital’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 23 hours ago when the stock gained 2.1% on the news that the company announced a series of next-generation storage solutions aimed at the rapidly growing artificial intelligence (AI) and high-performance computing (HPC) markets. At an industry event, Western Digital showcased its Ultrastar Data60 and Data102 products, which were designed to provide higher storage density and consume less power.

Western Digital is up 147% since the beginning of the year, but at $152.84 per share, it is still trading 12.3% below its 52-week high of $174.22 from November 2025. Investors who bought $1,000 worth of Western Digital’s shares 5 years ago would now be looking at an investment worth $3,597.