Investing.com – Xilinx surged Thursday in broad rally across semiconductor stocks following a slew of blowout earnings.
Chipmaker Xilinx (NASDAQ:XLNX) surged 15% after its third-quarter results crushed analysts' estimates as it benefited from the expansion of 5G wireless networks in South Korea. The company also guided revenue well above expectations.
The chipmaker reported third-quarter earnings of 93 cents a share, on $800 million in revenue, topping estimates for 85 cents a share on $770 million in revenue.
For the fiscal fourth quarter, the company guided revenue in the range of $815 million to $835 million, well above consensus of $776.2 million.
Chip-equipment maker Lam Research (NASDAQ:LRCX) also topped earnings and revenue estimates, sending its share price soaring 14%, despite analysts trimming their outlook on the company's stock.
The company reported earnings of $3.87 a share, on $2.52 billion in revenue, above estimates for $3.66 a share on $2.50 million in revenue.
Lam's upbeat report, however, didn’t gain favor with Wall Street as Cowen cut its price target on the company’s stock to $185 from $210. Mizuho also cut its price target to $160 from $165.
Texas Instruments (NASDAQ:TXN), meanwhile, shrugged off mixed results as its share price rose 6%.
The chipmaker's fourth-quarter earnings of $1.27 a share were in line, but revenue of $3.72 billion was below estimates.
The revenue miss was attributed to a 12% plunge in embedded processing growth, while smartphone weakness and trade tensions also kept a lid on performance.
"Although we remain cautious about demand in the personal electronics space, largely reflecting smartphone softness, we are optimistic about content opportunities in the industrial and automotive markets," said CFRA, an independent research provider.
The move higher in semis comes ahead of results from Intel (NASDAQ:INTC) due after the close, which some have said would be key in determining whether this rally will continue or grind to halt.
Philadelphia Semiconductor Index rose 5.2%.