The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Amkor (NASDAQ:AMKR) and the rest of the semiconductor manufacturing stocks fared in Q3.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, 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 a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 1.3% below.
In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.
Amkor (NASDAQ:AMKR)
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.
Amkor reported revenues of $1.86 billion, up 2.2% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ EPS estimates.
“Amkor delivered third quarter revenue of $1.86 billion, up 27% sequentially, driven by strong demand for our Advanced SiP technology to support the Communications and Consumer end markets,” said Giel Rutten, Amkor’s president and chief executive officer.
Unsurprisingly, the stock is down 8.5% since reporting and currently trades at $26.99.
Read our full report on Amkor here, it’s free.
Best Q3: Marvell Technology (NASDAQ:MRVL)
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Marvell Technology reported revenues of $1.52 billion, up 6.9% year on year, outperforming analysts’ expectations by 4%. The business had an exceptional quarter with a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 30.3% since reporting. It currently trades at $125.04.
Is now the time to buy Marvell Technology? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Entegris (NASDAQ:ENTG)
With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Entegris reported revenues of $807.7 million, down 9.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations.
Entegris delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $106.31.
Read our full analysis of Entegris’s results here.
KLA Corporation (NASDAQ:KLAC)
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
KLA Corporation reported revenues of $2.84 billion, up 18.5% year on year. This result topped analysts’ expectations by 3.1%. It was a very strong quarter as it also produced a significant improvement in its inventory levels and a solid beat of analysts’ adjusted operating income estimates.
The stock is down 5.5% since reporting and currently trades at $653.50.
Read our full, actionable report on KLA Corporation here, it’s free.
Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $179 million, up 38.9% year on year. This number surpassed analysts’ expectations by 4.1%. Overall, it was a very strong quarter as it also logged a significant improvement in its inventory levels and revenue guidance for next quarter beating analysts’ expectations.
Nova scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $190.85.
Read our full, actionable report on Nova here, it’s free.
Market Update
In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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