Looking back on analog semiconductors stocks' Q1 earnings, we examine this quarter's best and worst performers, including Power Integrations (NASDAQ:POWI) and its peers.

Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.

The 15 analog semiconductors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.9%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but analog semiconductors stocks have performed well, with the share prices up 14.3% on average since the previous earnings results.

Power Integrations (NASDAQ:POWI)

A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.

Power Integrations reported revenues of $91.69 million, down 13.7% year on year, topping analysts' expectations by 1.9%. It was a decent quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.

The stock is up 0.6% since the results and currently trades at $70.68.

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

Best Q1: Impinj (NASDAQ:PI)

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.

Impinj reported revenues of $76.83 million, down 10.6% year on year, outperforming analysts' expectations by 4.4%. It was a very strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.

The stock is up 31.7% since the results and currently trades at $159.02.

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

Weakest Q1: Microchip Technology (NASDAQ:MCHP)

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.