Unpacking Q2 Earnings: Nvidia (NASDAQ:NVDA) In The Context Of Other Processors and Graphics Chips Stocks

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 Q2. Today, we are looking at processors and graphics chips stocks, starting with Nvidia .

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 9 processors and graphics chips stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

Nvidia

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Nvidia reported revenues of $46.74 billion, up 55.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

“Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap — production of Blackwell Ultra is ramping at full speed, and demand is extraordinary,” said Jensen Huang, founder and CEO of NVIDIA.

Nvidia pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 6.4% since reporting and currently trades at $168.20.

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

Best Q2: 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 $818.8 million, down 7.7% year on year, outperforming analysts’ expectations by 5.3%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $89.93.

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

Weakest Q2: Intel

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel is a leading manufacturer of computer processors and graphics chips.

Intel reported revenues of $12.86 billion, flat year on year, exceeding analysts’ expectations by 7.8%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 8.5% since the results and currently trades at $24.53.

Read our full analysis of Intel’s results here.

Lattice Semiconductor

A global leader in its category, Lattice Semiconductor is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.

Lattice Semiconductor reported revenues of $124 million, flat year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also logged an improvement in its inventory levels but revenue guidance for next quarter meeting analysts’ expectations.

The stock is up 36.7% since reporting and currently trades at $66.65.

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

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 $7.69 billion, up 31.7% year on year. This result surpassed analysts’ expectations by 3.4%. Zooming out, it was a mixed quarter as it also produced a significant improvement in its inventory levels but revenue guidance for next quarter meeting analysts’ expectations.

The stock is down 13.5% since reporting and currently trades at $150.93.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.