As corporate giants pour millions into artificial intelligence (AI), semiconductor stocks have seized the spotlight as prime beneficiaries of this burgeoning movement. Semiconductor companies find themselves grappling with a slowdown in industrial and automobile sectors, as well as communications infrastructure, juxtaposed with an enduring surge in AI infrastructure demand, buoyed by robust capital expenditure projections from prominent U.S. hyperscalers, according to KeyBanc Capital Markets.
Previewing the Semiconductor Earnings Season: Set to unveil their latest financial performances this week are Nvidia Corp NVDA, Analog Devices, Inc. ADI and indie Semiconductor Inc INDI.
Insights from a Semiconductor Analyst: John Vinh has expressed a bullish outlook for both Analog Devices and indie Semiconductor, by reiterating an Overweight rating and maintaining unchanged price targets of $220 and $12, respectively.
Look into other market analyst stock ratings.
Analog Devices
“We anticipate that ADI will present results in line with expectations and offer guidance that is on par or slightly reduced, owing to dampened demand trends in the industrial and automotive sectors, along with ongoing inventory destocking, albeit partially offset by first-quarter price hikes,” Vinh conveyed in a market note.
Projections for the latest quarter:
- Revenue: $2.51 billion versus consensus estimates of $2.50 billion
- Earnings: $1.72 per share versus consensus estimates of $1.71 per share
indie Semiconductor
The company is also anticipated to unveil results aligning with estimates and provide guidance that is either in line or marginally reduced, amidst escalating weakness in the automotive realm, spanning both internal combustion engine and electric vehicle segments, coupled with modest pricing pressure following Texas Instruments’ price reduction, as detailed by the analyst.
Projections for the latest quarter:
- Revenue: $73 million, aligning with consensus estimates
- Earnings: Breakeven, versus consensus estimates of a loss of 1 cent per share
Nvidia
Vinh has expressed expectations of Nvidia delivering robust results, surpassing estimates and favoring a positive outlook, fueled by heightened demand across all regions outside of China, primarily driven by the surge in demand for H100 GPUs.
Projections for the latest quarter:
- Revenue: $21.0 billion versus consensus estimates of $20.2 billion
- Earnings: $4.72 per share, versus consensus estimates of $4.51 per share
NVDA, ADI, INDI Price Action: At the time of publication on Tuesday, shares of Nvidia, Analog Devices, and indie Semiconductor witnessed declines, shedding 5.92% and resting at $683.40, 0.17% and settling at $187.93, and 2.11% and closing at $7.21, respectively.
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