Q4 Earnings Highlights: Allegro MicroSystems (NASDAQ:ALGM) Vs The Rest Of The Processors and Graphics Chips Stocks

Barchart·04/06/2026 04:46:14

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Allegro MicroSystems (NASDAQ:ALGM) and its peers.

The biggest demand drivers for processors (CPUs) and graphics chips at the moment are secular trends related to 5G and Internet of Things, autonomous driving, and high performance computing in the data center space, specifically around AI and machine learning. Like all semiconductor companies, digital chip makers exhibit a degree of cyclicality, driven by supply and demand imbalances and exposure to PC and Smartphone product cycles.

The 9 processors and graphics chips stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was above.

While some processors and graphics chips stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.

Allegro MicroSystems (NASDAQ:ALGM)

The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.

Allegro MicroSystems reported revenues of $229.2 million, up 28.9% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

“We delivered strong third quarter results, with sales of $229 million exceeding the high end of our guidance range. Additionally, non-GAAP EPS more than doubled year-over-year to $0.15. This performance was driven by broad strength in Automotive sales, which grew 28% year-over-year, including a 46% increase in e-Mobility. Our Industrial sales also saw robust growth, increasing 31% year-over-year, led by another record quarter in Data Center,” said Mike Doogue, President and CEO of Allegro.

The stock is down 4.5% since reporting and currently trades at $33.01.

Is now the time to buy Allegro MicroSystems? Access our full analysis of the earnings results here, it’s free.

Best Q4: Qorvo (NASDAQ:QRVO)

Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.

Qorvo reported revenues of $993 million, up 8.4% year on year, in line with analysts’ expectations. The business had an exceptional quarter with a beat of analysts’ EPS and adjusted operating income estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.6% since reporting. It currently trades at $79.

Is now the time to buy Qorvo? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Qualcomm (NASDAQ:QCOM)

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.

Qualcomm reported revenues of $12.25 billion, up 5% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a significant improvement in its inventory levels but revenue guidance for next quarter missing analysts’ expectations significantly.

Qualcomm delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.7% since the results and currently trades at $126.94.

Read our full analysis of Qualcomm’s results here.

Broadcom (NASDAQ:AVGO)

Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.

Broadcom reported revenues of $19.31 billion, up 29.5% year on year. This result beat analysts’ expectations by 0.5%. It was a strong quarter as it also produced revenue guidance for next quarter exceeding analysts’ expectations and a narrow beat of analysts’ adjusted operating income estimates.

The stock is down 1% since reporting and currently trades at $314.20.

Read our full, actionable report on Broadcom here, it’s free.

Nvidia (NASDAQ:NVDA)

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Nvidia reported revenues of $68.13 billion, up 73.2% year on year. This number surpassed analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also logged revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Nvidia achieved the fastest revenue growth among its peers. The stock is down 9.6% since reporting and currently trades at $176.70.

Read our full, actionable report on Nvidia here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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