Shares of chip designer Allegro MicroSystems (NASDAQ:ALGM) fell 6.8% in the afternoon session after the company reported quarterly financial results that disappointed investors on profitability. The chip designer announced revenue of $203.4 million, a 22% increase from the previous year, which surpassed analyst forecasts. Allegro also issued an optimistic outlook for the next quarter, expecting revenue to land between $205 million and $215 million. However, investors focused on the company's bottom line. The reported GAAP loss of $0.07 per share fell significantly short of Wall Street's expectations. This earnings miss appeared to overshadow the strong sales growth and positive guidance, prompting a sell-off in the stock.
Chip designer Allegro MicroSystems (NASDAQ:ALGM) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 21.9% year on year to $203.4 million. Guidance for next quarter’s revenue was better than expected at $210 million at the midpoint, 1.4% above analysts’ estimates. Its GAAP loss of $0.07 per share was significantly below analysts’ consensus estimates.
A number of stocks fell in the afternoon session after industry bellwether Texas Instruments signaled softer demand and issued a cautious outlook. Texas Instruments, a key chipmaker for various industries, sparked concern after it provided a weaker-than-expected forecast for the remainder of the year. Analysts on the company's earnings call noted a "tone shift" from executives regarding the semiconductor recovery cycle compared to previous quarters. The change in messaging from a major industry player created uncertainty about the health of the overall chip market. This cautious sentiment appeared to weigh on related stocks, as investors reassessed the sector's near-term growth prospects.
Looking back on processors and graphics chips stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Qorvo (NASDAQ:QRVO) and its peers.
A number of stocks fell in the morning session after a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike.
Exciting developments are taking place for the stocks in this article.
They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the processors and graphics chips industry, including Intel (NASDAQ:INTC) and its peers.
Semiconductors are the core infrastructure powering the Information Age. The amount of data we ingest is also increasing exponentially, leading to elevated demand for chips with more processing power.
This secular trend has buoyed the industry, which has posted a six-month return of 4.9%, almost identical to the S&P 500.
Let’s dig into the relative performance of Penguin Solutions (NASDAQ:PENG) and its peers as we unravel the now-completed Q1 processors and graphics chips earnings season.
The stocks in this article are all trading near their 52-week highs.
This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
BofA analyst favors 5 SMid cap names in semiconductor sector for strong growth, EPS leverage, and TAM expansion, raises price forecasts for MTSI, NVMI.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
Bank of America Securities analyst Vivek Arya has reinstated its coverage of Allegro Microsystems (NASDAQ: ALGM) with a Buy rating and a price objective of $38 per share.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Allegro MicroSystems (NASDAQ:ALGM) and the best and worst performers in the processors and graphics chips industry.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Chip designer Allegro MicroSystems (NASDAQ:ALGM) beat the market’s revenue expectations in Q1 CY2025. Its non-GAAP profit of $0.06 per share was in line with analysts’ consensus estimates.
Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match.
The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
