This past earnings season was largely mixed for companies in the semiconductor industry. Major players like Intel, NVidia, and Ambarella crushed expectations while lesser known names like AMD found it difficult to stimulate growth. Overall worldwide semiconductor sales fell 0.2 percent on a year-over-year basis largely due to the slowdown in China and currency headwinds. Companies with high exposure to the PC market were also hit hard by lower demand and weak holiday sales.
Meanwhile, Apple reported its slowest growth in iPhone sales last quarter and expects sales to decline until the release of the iPhone 7, thereby forcing suppliers to scale back production. The biggest names impacted by this include Cirrus Logic and Qorvo, which have already posted weaker guidance on first-quarter earnings.
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On the bright side, companies associated with the gaming industry enjoyed robust growth. In particular, NVidia reported record high revenue of $1.4 billion, beating the Estimize consensus by $80 million. Intel is also developing a gaming chip to capitalize on the rapid growth in GPUs.