As we wrap up the second quarter results, we take a look at the numbers and key takeaways for semiconductor manufacturing stocks, including Lam Research (NASDAQ:LRCX) and its peers.
The semiconductor industry is driven by demand for advanced electronic products such as smartphones, PCs, servers, and data storage. The need for technologies such as artificial intelligence, 5G networks, and smart cars are also creating the next wave of growth in the industry. Keeping up with this dynamism requires new tools to design, manufacture, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported strong second quarter results. For the group, revenue exceeded analysts’ consensus estimates by 1.8%, while revenue guidance for the next quarter was 2.7% lower.
Recently, the Fed decided to cut its policy rate by 50 bps (0.5%) in September 2024 as inflation moved towards the Fed’s 2% target. This is the first reduction in four years. Recent CPI (inflation) statistics are supportive, but employment measures are a cause for concern. Markets will debate whether the timing of this rate cut (and more likely in 2024 and 2025) is ideal to support the economy, or whether it’s a bit too late for an already chilled macro. Probably.
Semiconductor manufacturing stocks performed well following this news, with stock prices rising an average of 2.1% since the latest earnings announcement.
Lam Research (NASDAQ:LRCX)
Founded in 1980 by semiconductor etch technology pioneer David Lamb, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used in semiconductor manufacturing.
Lam Research reported revenue of $3.87 billion, up 20.7% year over year. The results beat analysts’ expectations by 1%. Overall, it was a strong quarter for the company, significantly beating analysts’ EPS estimates and significantly improving operating margins.
“Lum’s June quarter results are at the midpoint of our guidance, driven by continued strong execution and growth in our Customer Support business group,” said Tim Archer, president and chief executive officer of Lam Research. The result was higher than that.”
Unsurprisingly, the stock has fallen 7.1% since the report and is currently trading at $85.76.
I think Lam Research is a good company, but should I buy it today? Read the full report here. It’s free.
Best of Q2: Nova (NASDAQ:NVMI)
Nova (NASDAQ:NVMI), headquartered in Israel, is a provider of quality control systems used in semiconductor manufacturing.
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Nova’s revenue was $156.9 million, up 27.8% year-over-year and beating analyst expectations by 5.9%. The business had an exceptional quarter, exceeding analysts’ EPS estimates and significantly improving operating margins.
Nova has achieved the fastest revenue growth among its peers. The market seems satisfied with this result, with the stock price up 22.2% since the announcement. Current price is $221.56.
Is now the time to buy a Nova? A complete analysis of our financial results is available for free here.
Slowest Q2: Photronics (NASDAQ:PLAB)
Photronics (NASDAQ:PLAB), which has facilities around the world, is a manufacturer of photomasks, which are templates used to transfer patterns onto semiconductor wafers.
Photronics reported sales of $211 million, down 5.9% from a year earlier, and 6.2% below analysts’ expectations. This quarter was a weak one, as earnings forecasts for the next quarter were overwhelmingly low and analysts’ EPS estimates were also below expectations.
Photronics’ performance was the weakest in the group compared to analysts’ expectations. The stock price has been flat since earnings and is currently trading at $23.81.
For a complete analysis of Photronics results, please see here.
Semtech (NASDAQ:SMTC)
Semtech (NASDAQ:SMTC), a publicly traded company since the late 1960s, is a provider of analog and mixed-signal semiconductors used in Internet of Things systems and cloud connectivity.
Semtech’s revenue was $215.4 million, down 9.7% year over year. The result was 1.5% higher than analysts expected. It was also a strong quarter as the company significantly beat analysts’ EPS estimates and gross margins improved significantly.
The stock price has increased 19.6% since the report and is currently trading at $45.65.
Read the full practical report on Semtech for free here.
Marvell Technology (NASDAQ:MRVL)
In one of the biggest semiconductor business model shifts in the last decade, moving away from low-margin storage device management chips, Marvell Technology (NASDAQ: MRVL) He is a fabless designer of data processing and networking chips. , Corporate, Automotive.
Marvell Technology’s revenue was $1.27 billion, down 5.1% year over year. This figure was 1.5% higher than analysts expected. Overall, it was a very strong quarter, with gross margins and inventory levels also improving significantly.
The stock has increased 11.5% since the report and is currently trading at $77.87.
Read the full practical report on Marvell Technology for free here.
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