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Summary
- Intel’s stock bounced over 6 per cent, as the company reported the record growth in 2020 revenue.
- IBM scrips fell 7 per cent in the pre-market session on January 22, over weaker earnings per share on a year-over-year basis.
- AMD stocks have advanced by 78 per cent in the last one year, and its current ROE stands at 29.09 per cent. The company is likely to announce its Q4 earnings on January 26.
The microchip companies are an integral part of our work from home environment, helping us connect through our smart devices. Enterprises have been monitoring their operations through semiconductor-driven mega computers amid the coronavirus-led shutdowns.
The new normal has propelled an exponential growth of chipmakers across the world. On top of that, 5G smartphone manufacturers also rely on microchips.
Needless to say, tech savvy investors are always on the lookout for giant semiconductor and software companies such as Advanced Micro Devices Inc. (US:AMD or NASDAQ: AMD), Intel Corporation (INTC:US or NASDAQ: INTC), and International Business Machines Corporation (IBM:US or NYSE: IBM). All these three stocks have been buzzing on Wall Street this week.
Semiconductor Market Developments
Intel Corporation was scheduled to announce its Q4 earnings post-market on Thursday, January 21. But the chipmaker released its results right before the closing bell.
The company posted a record 2020 revenue of US$ 77.9 billion, an 8 per cent year-over-year (YoY) surge. This led to Intel share jumping as much as 6.46 per cent up to US$ 62.46, before closing.
International Business Machines (IBM) Corporation announced its results post trading hours on the same day. Its Q4 revenue plunged 6 per cent YoY to C$ 20.4 billion. IBM shares fell nearly 7 per cent in its pre-market session on January 22.
Advanced Micro Devices Inc expects to announce its Q4 earnings on Tuesday, January 26. The company estimates to generate better Q4 revenues, driven by higher demand for Xbox and PlayStation consoles during the quarter. The semiconductor stock gained over 3 per cent on Thursday.
Image Source: Kalkine Group @2020
A Glance At Chipmakers’ Financial Health And Stock Performance
Intel reported earnings per share of US$ 1.42 in the fourth quarter of 2020. On the back of record earnings, approximately 87 million Intel stocks changed hands on Thursday. However, the company forecasts revenue of nearly US$ 18.6 billion for first-quarter 2021, down from US$ 20 billion in Q4 2020.
On the other hand, IBM reported diluted earnings per share of US$ 6.13 in 2020, down 42 per cent YoY from US$ 10.57 in 2019. The tech company’s stock is down marginally by 3.7 per cent in one year. Shares of the New York-based software giant are presently returning 40 per cent on equity.
Advanced Micro Devices’ scrips rose 78 per cent in one year, with a current return on equity of 29.09 per cent. In the third quarter of 2020, the semiconductor manufacturer registered a record revenue of $2.80 billion, which soared 56 percent YoY.
