As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at analog semiconductors stocks, starting with Analog Devices (NASDAQ: ADI).

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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 7,676% above.

In light of this news, share prices of the companies have held steady as they are up 1.1% on average since the latest earnings results.

Analog Devices (NASDAQ: ADI)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Analog Devices reported revenues of $3.08 billion, up 25.9% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with revenue guidance for next quarter beating analysts’ expectations and a decent beat of analysts’ revenue estimates.

"ADI's strong fourth quarter capped a robust year of both cyclical and idiosyncratic growth," said Vincent Roche, CEO and Chair.

Interestingly, the stock is up 17.4% since reporting and currently trades at $281.08.

Is now the time to buy Analog Devices? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Skyworks Solutions (NASDAQ: SWKS)

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Skyworks Solutions reported revenues of $1.1 billion, up 7.3% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.6% since reporting. It currently trades at $68.67.

Is now the time to buy Skyworks Solutions? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Universal Display (NASDAQ: OLED)

Serving major consumer electronics manufacturers, Universal Display (NASDAQ: OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.

Universal Display reported revenues of $139.6 million, down 13.6% year on year, falling short of analysts’ expectations by 15.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Universal Display delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.8% since the results and currently trades at $122.21.

Read our full analysis of Universal Display’s results here.

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 $3.17 billion, down 2.4% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged revenue guidance for next quarter topping analysts’ expectations but EPS in line with analysts’ estimates.

The stock is up 4.1% since reporting and currently trades at $230.61.

Read our full, actionable report on NXP Semiconductors here, it’s free for active Edge members.

MACOM (NASDAQ: MTSI)

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

MACOM reported revenues of $261.2 million, up 30.1% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded revenue guidance for next quarter topping analysts’ expectations but an increase in its inventory levels.

MACOM achieved the fastest revenue growth among its peers. The stock is up 24.3% since reporting and currently trades at $186.06.

Read our full, actionable report on MACOM here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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