The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how processors and graphics chips stocks fared in Q2, starting with Intel (NASDAQ: INTC).

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 8 processors and graphics chips stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 6.8% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results.

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. This print exceeded analysts’ expectations by 11.7%. Overall, it was an incredible quarter for the company with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

“AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and vast wafer foundry network,” said Lip-Bu Tan, Intel CEO.

Intel pulled off the biggest analyst estimate beat in the group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.6% since reporting and currently trades at $86.60.

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

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, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates.

Lattice Semiconductor achieved the highest guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 30.2% since reporting. It currently trades at $96.38.

Is now the time to buy Lattice Semiconductor? 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.

Qualcomm delivered the slowest revenue growth among its peers. Interestingly, the stock is up 12.5% since the results and currently trades at $175.20.

Read our full analysis of Qualcomm’s results here.

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 $566.7 million, up 67.7% year on year. This print topped analysts’ expectations by 8.8%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ operating income estimates.

The stock is down 16.9% since reporting and currently trades at $53.34.

Read our full, actionable report on Penguin Solutions here, it’s free.

Allegro MicroSystems (NASDAQ: ALGM)

The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ: ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.

Allegro MicroSystems reported revenues of $259.2 million, up 27.5% year on year. This number beat analysts’ expectations by 3.1%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ operating income estimates.

The stock is down 24% since reporting and currently trades at $32.09.

Read our full, actionable report on Allegro MicroSystems 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 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.