Close menu

August 3rd, 2022 | 12:52 CEST

Is the turnaround coming for chip stocks? Intel, Nvidia, BrainChip, Aixtron and AMD

  • Technology
  • AI
Photo credits:

Last year, semiconductors were declared the new gold due to blown-up supply chains and the resulting shortages. After the recent boom and the build-up of overcapacity, the market could now grind to a halt by 2023 at the latest. High inflation, a global economic downturn and a possible recession in the industry could do the rest. Last week, Intel was already in the red with a slump in sales. In contrast, other companies from the chip sector could report positive surprises.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: INTEL CORP. DL-_001 | US4581401001 , NVIDIA CORP. DL-_001 | US67066G1040 , BRAINCHIP HOLDINGS LTD | AU000000BRN8 , AIXTRON SE NA O.N. | DE000A0WMPJ6

Table of contents:

    Intel, AMD, Infineon, Nvidia - catastrophic figures ahead

    Horror figures, disaster....! The media did not shy away from superlatives when announcing the results for the second quarter. Intel shocked analysts and investors alike, who subsequently acknowledged this with a share price drop of over 10%. The one-time market leader saw its revenue drop 22% to USD 15.32 billion, alienating a crowd of analysts still expecting USD 18.62 billion.

    Adjusted earnings per share were USD 0.29, compared with the expected USD 0.70. The net result was a loss of USD 454 million; last year Intel still generated a profit of almost USD 5 billion. The gross margin fell from 50.4% in Q1 2022 to just 36.5% in Q2 2022.

    "The sudden and rapid decline in economic activity was the primary reason for the shortfall, but Q2 also reflected our own execution issues in areas such as product design and ramping up AXG (Accelerated Computing Systems and Graphics Group) offerings," CEO Gelsinger said, explaining the downturn.

    The reins have been tightened once again for the full year, and forecasts have been lowered. Management led by CEO Patrick Gelsinger, the world's highest-paid executive at USD 179.00 million last year, expects adjusted earnings per share of USD 2.30. The original estimate was USD 3.60 per share. The revenue target was restated in a range of USD 65 billion to USD 68 billion. Previously, Intel wanted to generate up to USD 76 billion.

    It is well known that the problems are homemade, and Intel has been working on restructuring for a long time. Thus, this strong revenue downturn should not be completely transferable to the entire industry. Investors should gain new insights when the competition presents its figures for the second quarter. Advanced Micro Devices delivered yesterday after the close of the stock market, while the German player Infineon plans to surprise positively today, Wednesday. Nvidia, on the other hand, is not expected to attract investors' attention until August 24.

    BrainChip - Entry into the mass market

    The next-generation chip is currently being developed by the Australian IP company BrainChip. The novel technology of the Akida chip could see a market shift in the near future that could shake up the incumbents. Another possibility would be the acquisition of the revolutionary technology by a global player, which would likely make BrainChip an attractive takeover candidate. It is no coincidence that the Akida chip was recently accepted into the AI Partner Program by ARM. Mercedes-Benz also relies on the novel technology for its EQXX.

    The USP of the innovative processor lies in the fact that it is very low-power, high-performance and promotes the growth of edge AI technology through the use of neuromorphic architecture, a type of artificial intelligence inspired by the biology of the human brain. Experts see it as significantly more efficient than traditional chips, as it can learn independently with each process. Application areas, therefore, revolve around future topics such as autonomous driving, robotics and the Internet of Things.

    "Unlocking the future of AI" is what it says on the Company's homepage, which has already opened the door wide to the mass market. After a strong correction and a one-year low at AUD 0.76, BrainChip's stock has recovered sharply and stabilized above the AUD 1.00 level. Akida technology is also in high demand among major players. If further partnerships are announced, the next ramp-up should start. The all-time high was AUD 2.34 at the beginning of the year.

    Aixtron - Analysts divided

    The Herzogenrath-based Company already announced its figures for the second quarter at the end of July. Aixtron benefited from high demand from almost all end markets and recorded the highest order intake since 2011. It amounted to approximately EUR 283 million in the second quarter, 7% higher than a year earlier. At the half-year mark on June 30, 2022, a total of EUR 314 million was on the books. Sales grew by around 51% to EUR 102.5 million, and the gross margin was 37%, as in the same period last year. EBIT tripled to EUR 17.2 million. As a result, profits doubled to EUR 17.3 million.

    The MDAX member expects order intake to be between EUR 520 million and EUR 580 million for the full year. Sales should be between EUR 450 million and EUR 500 million, with a gross margin of around 41%.

    Various analyst houses expressed different opinions here. Private bank Berenberg raised its price target for Aixtron from EUR 26 to EUR 28 after quarterly figures and left its rating at "buy". In contrast, DZ Bank is significantly more pessimistic and downgraded the stock from "buy" to "sell". The price target was also lowered from EUR 27 to currently EUR 22.

    After the strong correction in chip stocks, the second quarter number season is now upon us. The former market leader, Intel, disappointed but has internal restructuring problems. On the other hand, AMD, Infineon and Nvidia could see a turnaround. BrainChip is on the verge of a breakthrough in the mass market and has high growth potential in the long term.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by Armin Schulz on August 8th, 2022 | 12:45 CEST

    Infineon, BrainChip, Nvidia - Chip shortage will continue in 2022

    • AI
    • Technology
    • Digitization
    • chips

    The chip shortage is not only omnipresent in the automotive industry. Most recently, AOK was no longer able to issue electronic health cards to its policyholders because the chips were missing. According to McKinsey, the semiconductor industry is expected to grow by 6-8% annually until 2030. Nancy Pelosi's visit to Taiwan could further fuel the chip crisis in the future. It is important to know that the island nation produces about two-thirds of all microchips needed worldwide. There is a latent danger that China will want to annex Taiwan. The USA is already trying to make itself less dependent on Asia. To that end, a USD 369 billion semiconductor manufacturing stimulus bill has been passed by Congress. Today we look at three companies that will benefit from the investment.


    Commented by Juliane Zielonka on August 5th, 2022 | 11:54 CEST

    Meta Materials, JinkoSolar, BioNTech - Smart technologies as growth boosters

    • Innovations
    • Technology
    • metamaterials
    • Biotechnology

    Solar and photovoltaic companies have been hot in the financial markets since the shifts in the energy market. Chinese supplier JinkoSolar, for example, is now launching solar batteries for home use. Smart buildings are an important component in urban city planning. Where there is plenty of sunshine, its energy is converted for personal use, and Australian residents are benefiting from JinkoSolar's technology. In order to increase the efficiency of such energy sources, Meta Materials offers innovative solutions that make solar systems even more cost-effective. Thanks to numerous patents, they also have a business model, which will please long-term investors in terms of growth opportunities. Rather unpleasant, however, are the measures planned by the German government for the coming fall and winter. Masks or vaccination is the calculation, which will at least bring some joy to BioNTech shareholders.


    Commented by Stefan Feulner on August 4th, 2022 | 13:53 CEST

    Crash! Which shares are attractive now - TeamViewer, Viva Gold, Infineon

    • Mining
    • Gold
    • Technology
    • Investments

    The technology sector has been in a sharp correction for months. The leading technology index from the US alone, the Nasdaq-100, recorded price losses of around 34% up to its low. Since the middle of last month, a countermovement has set in. However, many companies are still at an interesting entry level. Currently, the season for the publication of the figures for the second quarter is also underway. Here it becomes clear which companies you can build on in the future or which title you should remove from your portfolio.