Looking back on analog semiconductors stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including NXP Semiconductors (NASDAQ: NXPI) and its peers.
Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.
The 15 analog semiconductors stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.9% above.
Luckily, analog semiconductors stocks have performed well with share prices up 19% on average since the latest earnings results.
NXP Semiconductors (NASDAQ: NXPI)
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
NXP Semiconductors reported revenues of $2.84 billion, down 9.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
“NXP delivered quarterly revenue of $2.84 billion, in-line with the midpoint of guidance. NXP's first-quarter results and guidance for the second quarter underpin a cautious optimism that NXP continues to effectively navigate through a challenging set of market conditions. We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects. Considering these external factors, we are redoubling our efforts to manage what is in our direct control, enabling NXP to drive solid profitability and earnings,” said Kurt Sievers, NXP President and Chief Executive Officer.
Interestingly, the stock is up 8.3% since reporting and currently trades at $212.93.
Read our full report on NXP Semiconductors here, it’s free.
Best Q1: Himax (NASDAQ: HIMX)
Taiwan-based Himax Technologies (NASDAQ: HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.
Himax reported revenues of $215.1 million, up 3.7% year on year, outperforming analysts’ expectations by 2.4%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $8.90.
Is now the time to buy Himax? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Vishay Intertechnology (NYSE: VSH)
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE: VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Vishay Intertechnology reported revenues of $715.2 million, down 4.2% year on year, falling short of analysts’ expectations by 0.6%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue guidance for next quarter meeting analysts’ expectations.
Vishay Intertechnology delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 14.6% since the results and currently trades at $15.39.
Read our full analysis of Vishay Intertechnology’s results here.
Microchip Technology (NASDAQ: MCHP)
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Microchip Technology reported revenues of $970.5 million, down 26.8% year on year. This number surpassed analysts’ expectations by 1%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Microchip Technology had the slowest revenue growth among its peers. The stock is up 41.7% since reporting and currently trades at $69.58.
Read our full, actionable report on Microchip Technology here, it’s free.
Magnachip (NYSE: MX)
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE: MX) is a provider of analog and mixed-signal semiconductors.
Magnachip reported revenues of $44.72 million, up 3% year on year. This result met analysts’ expectations. It was a strong quarter as it also put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 13.8% since reporting and currently trades at $3.80.
Read our full, actionable report on Magnachip here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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