Unpacking Q1 Earnings: Qualcomm (NASDAQ:QCOM) In The Context Of Other Processors and Graphics Chips Stocks
July 3, 20263 Mins read128
Share
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Qualcomm (NASDAQ:QCOM) and the best and worst performers in the processors and graphics chips industry.
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 very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was 4.2% above.
Luckily, processors and graphics chips stocks have performed well with share prices up 39.1% on average since the latest earnings results.
Slowest Q1: Qualcomm (NASDAQ:QCOM)
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) 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 $10.6 billion, down 2.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations and an increase in its inventory levels.
Qualcomm delivered the weakest performance against analyst estimates and weakest guidance update of the whole group. Interestingly, the stock is up 13.5% since reporting and currently trades at $177.05.
A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) 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 $170.9 million, up 42.2% year on year, outperforming analysts’ expectations by 3.6%. The business had a stunning quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $139.00.
The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.
Allegro MicroSystems reported revenues of $243.2 million, up 26.1% year on year, exceeding analysts’ expectations by 3.2%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 8% since the results and currently trades at $55.50.
Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) 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 $808.3 million, down 7% year on year. This result surpassed analysts’ expectations by 1%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS and operating income estimates.
Qorvo had the slowest revenue growth among its peers. The stock is down 8.4% since reporting and currently trades at $88.24.
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
AMD reported revenues of $10.25 billion, up 37.8% year on year. This number beat analysts’ expectations by 3.6%. It was an exceptional quarter as it also put up revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is up 46.2% since reporting and currently trades at $519.42.
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
USD/JPY 200826 4h Chart USD/JPY rebounds as traders focus on rising Treasury yields. The yield of 2-year Treasuries climbed towards the 4.20% level,...
Leave a comment