Let’s dig into the relative performance of Nvidia (NASDAQ: NVDA) and its peers as we unravel the now-completed Q2 processors and graphics chips earnings season.
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 Q2. As a group, revenues beat analysts’ consensus estimates by 6.3% while next quarter’s revenue guidance was 6.8% above.
While some processors and graphics chips stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.
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 $96.22 billion, up 106% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ operating income estimates.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said Jensen Huang, founder and CEO of NVIDIA. “And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
Nvidia achieved the fastest revenue growth in the group. Unsurprisingly, the stock is up 1.3% since reporting and currently trades at $212.38.
Best Q2: Intel (NASDAQ: INTC)
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Intel reported revenues of $16.13 billion, up 25.4% year on year, outperforming analysts’ expectations by 11.7%. The business had an incredible quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.2% since reporting. It currently trades at $97.06.
Is now the time to buy Intel? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $9.95 billion, down 4% year on year, exceeding analysts’ expectations by 3%. Still, it was a mixed quarter as it posted an increase in its inventory levels.
Interestingly, the stock is up 20.5% since the results and currently trades at $187.57.
Read our full analysis of Qualcomm’s results here.
Lattice Semiconductor (NASDAQ: LSCC)
A global leader in its category, Lattice Semiconductor (NASDAQ: LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Lattice Semiconductor reported revenues of $201.1 million, up 62.2% year on year. This number surpassed analysts’ expectations by 8.6%. Overall, it was a stunning quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ operating income estimates.
Lattice Semiconductor achieved the highest guidance raise among its peers. The stock is down 23.5% since reporting and currently trades at $105.51.
Read our full, actionable report on Lattice Semiconductor here, it’s free.
Penguin Solutions (NASDAQ: PENG)
Based in the US, Penguin Solutions (NASDAQ: PENG) is a diversified semiconductor company offering memory, digital, and LED products.
Penguin Solutions reported revenues of $478.7 million, up 47.6% year on year. This print beat analysts’ expectations by 17.5%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ operating income estimates.
Penguin Solutions pulled off the biggest analyst estimate beat of the whole group. The stock is down 24.4% since reporting and currently trades at $47.41.
Read our full, actionable report on Penguin Solutions here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
