The semiconductor sector is performing well this year, driven by the expansion of artificial intelligence (AI) applications, which are ushering in fresh opportunities for growth within the sector. Additionally, a spate of strong earnings reports from well-known players in the space has instilled confidence in the sector.

As such, VanEck Vectors Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, Invesco PHLX Semiconductor ETF SOXQ and First Trust NASDAQ Semiconductor ETF FTXL have gained 12.4%, 5.3%, 5.8% and 0.6%, respectively, year-to-date (read: Tech Leads S&P 500 to Highs: Does Further Rally Await ETFs?).

Let’s dig into the individual earnings releases:

Semiconductor Earnings in Focus

Intel INTC, the world’s largest chipmaker, beat on both the top and the bottom lines but provided a dismal first-quarter 2024 revenue guidance. It reported earnings per share of 54 cents, which beat the Zacks Consensus Estimate by 10 cents and came in higher than the year-ago earnings of 15 cents. Revenues grew 8% year over year to $15.41 billion and came in above the estimated $15.14 billion. For the current quarter, Intel projects revenues in the range of $12.2 billion to $13.20 billion, while earnings per share are expected to be 13 cents (read: Intel Falls On Weak Outlook: Buy the Dip With Chip ETFs?).

Texas Instruments TXN reported mixed fourth-quarter 2023 results. Earnings beat the Zacks Consensus Estimate by 2 cents but revenues lagged the same by $37 million. For first-quarter 2024, the company expects revenues in the range of $3.45-$3.75 billion and earnings per share in the band of 96 cents-$1.16.

Lam Research LRCX topped revenue and earnings estimates for second-quarter fiscal 2024. Earnings per share of $7.52 surpassed the Zacks Consensus Estimate by 46 cents, while revenues of $3.76 billion edged past the estimated $3.71 billion. For third-quarter fiscal 2024, the company expects revenues of $3.7 billion (+/- $300 million) and earnings per share of $7.25 (+/- 75 cents).

Advanced Micro Devices’ AMD revenues beat estimates while earnings matched the same. It reported earnings of 77 cents per share, on par with the Zacks Consensus Estimate, and revenues of $6.17 billion, which beat the consensus mark by $54 million. AMD expects first-quarter 2024 revenues of $5.4 billion (+/-$300 million).

At Qualcomm QCOM, earnings per share of $2.75 for first-quarter fiscal 2024 surpassed the Zacks Consensus Estimate by 37 cents. Revenues of $9.9 billion edged past the estimate of $9.5 billion. The company projects revenues of $8.9-$9.7 billion and earnings per share in the range of $2.20-$2.40 for the second quarter of fiscal 2024.