Semiconductor ETFs Look Decent Post Q3 Earnings

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The semiconductor sector has been on a remarkable rally in the past month. The expansion of artificial intelligence (AI) applications and the new monetary easing era led to a rally in semiconductor stocks. Additionally, a spate of stronger earnings reports from well-known players in the space added to the strength.

As such, VanEck Vectors Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, Invesco PHLX Semiconductor ETF SOXQ, First Trust NASDAQ Semiconductor ETF FTXL and Strive U.S. Semiconductor ETF SHOC have gained 4.5%, 0.4%, 1.8%, 2.1% and 2.4%, respectively, in the past month.

Let’s dig into the individual earnings releases:

Semiconductor Earnings in Focus

Intel INTC, the world’s largest chipmaker, reported a loss per share of 46 cents, wider than the Zacks Consensus Estimate of a loss of 20 cents. Revenues declined 6% year over year to $13.28 billion and edged past the estimated $13 billion. For the current quarter, Intel guided revenues of $13.3-$14.3 billion and adjusted earnings of 12 cents per share.

Texas Instruments TXN reported solid third-quarter 2024 results. Earnings beat the Zacks Consensus Estimate by 11 cents but revenues lagged the same by $40 million. For the fourth quarter of 2024, the company expects revenues in the range of $3.70-$4.00 billion and earnings per share in the band of $1.07-$1.29. 

Lam Research LRCX topped revenue and earnings estimates for first-quarter fiscal 2025. Earnings per share of 86 cents surpassed the Zacks Consensus Estimate by 6 cents, while revenues of $4.17 billion edged past the estimated $4.05 billion. For second-quarter fiscal 2025, the company expects revenues of $4.30 billion (+/- $300 million) and earnings per share of 87 cents (+/- 10 cents). 

Taiwan Semiconductor Manufacturing TSM reported robust third-quarter 2024 results. The company reported earnings per ADR of $1.94, which outpaced the Zacks Consensus Estimate of $1.74. Revenues rose 36% year over year to $23.5 billion and were above the estimate of $22.72 billion. For the fourth quarter, the company expects revenues to grow 35% year over year to $26.1-$26.9 billion (read: Buy Taiwan Semiconductor-Heavy ETFs on Upbeat Earnings).

Advanced Micro Devices AMD reported earnings of 92 cents per share, beating the Zacks Consensus Estimate by a penny. Revenues of $6.82 billion edged past the consensus mark of $6.71 million. AMD expects fourth-quarter 2024 revenues of $7.5 billion (+/-$300 million).

At Qualcomm QCOM, fourth-quarter fiscal 2024 earnings per share of $2.69 surpassed the Zacks Consensus Estimate by 13 cents. Revenues of $10.24 billion edged past the estimate of $9.9 billion. The company projects revenues of $10.5-$11.3 billion and earnings per share in the range of $2.85-$3.05 for the first quarter of fiscal 2025.

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