The semiconductor industry has continued its impressive performance into the early months of 2026, with the PHLX Semiconductor Sector (NASDAQ:SOX) index advancing by 10.14% year-to-date. This movement reinforces Cantor Fitzgerald’s stance that the sector remains an essential investment area.
C.J. Muse, semiconductor analyst at Cantor Fitzgerald, has delivered a detailed forecast for three significant chipmakers: Advanced Micro Devices (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM), and Microchip Technology (NASDAQ:MCHP), as these companies approach their quarterly earnings announcements.
Advanced Micro Devices Positioned for Quarterly Outperformance
In the upcoming quarterly report, Advanced Micro Devices is projected to slightly surpass expectations for the December period and to enhance its guidance for the March quarter. AMD’s improved performance is partly attributed to operational challenges Intel Corp (NASDAQ:INTC) is experiencing during a wafer transition, which has provided AMD with a competitive edge.
The growth momentum is anticipated to be primarily fueled by AMD’s data center CPUs and GPUs, innovations driven by agentic artificial intelligence developments, rising server demand, and the imminent launch of the MI 400-series processors. While overall client unit volumes might face limitations due to supply constraints, elevated average selling prices in both client and server segments are expected to underpin financial strength.
AMD is scheduled to release its quarterly earnings on Tuesday, with analysts predicting earnings per share (EPS) of $1.24. In the previous quarter, the company exceeded EPS expectations by $0.11, which corresponded with a 2.51% increase in its share price the following trading day.
Benzinga’s Edge Rankings currently place AMD in the 92nd percentile for momentum and the 86th percentile for quality, underscoring its robust market performance indicators. A look at Benzinga’s screener tools offers investors the ability to evaluate AMD’s standing in comparison with industry peers.
AMD stock has demonstrated remarkable growth over the last twelve months, climbing 115.52%, according to Benzinga Pro data. On the most recent Monday of trading, AMD shares increased by 4.03%, closing at $246.27.
Qualcomm Outlook Shows Signs of Pressure Despite December Beat
Qualcomm, while expected to outperform estimates in the December quarter, faces a challenging trajectory going forward. Forecasts suggest the company’s guidance for March will fall slightly below current consensus, with June projections anticipated to be even lower.
Several headwinds are impacting Qualcomm’s outlook, including strategic shifts by major clients Apple (NASDAQ:AAPL) and Samsung toward producing more modems internally, ongoing component shortages related to DRAM, NAND, and substrates, as well as projections of over 10% declines in handset volumes in China in 2026.
Given these factors, analyst Muse anticipates a notable downward revision of Qualcomm’s forecasts: a 20% reduction in handset-related revenue, a 10% decline in QCT unit revenues, and a 9% decrease in total revenues relative to consensus expectations. Qualcomm’s earnings report is expected on Wednesday, February 4.
The company’s current standing in Benzinga’s Edge Rankings signals somewhat mixed signals, sitting in the 58th percentile for quality and lower at the 19th percentile for momentum. Investors can use Benzinga’s comparison tools to gauge Qualcomm’s market performance among its peers.
Regarding price movements, Qualcomm’s stock has declined by approximately 10.34% over the past year, based on Benzinga Pro data. On the last Monday, shares inched higher by 0.69%, finishing the session at $152.63.
Microchip Technology Expected to Outperform Analog Sector Peers
After a series of favorable pre-announcements, Microchip Technology is anticipated to modestly surpass earnings and guidance expectations, showing performance above typical seasonal levels. Muse identifies Microchip as the preferred choice among analog chip stocks, underpinned by its substantial industrial market exposure, ramping of data center products, and a strong trend of gross margin expansion.
This positioning is forecast to allow Microchip to outperform the broader analog semiconductor market throughout 2026. Earlier in January, share prices responded positively when Microchip raised its fiscal Q3 2026 revenue guidance to approximately $1.185 billion, surpassing a previous forecast range of $1.109 to $1.149 billion and exceeding earlier updates that had indicated figures at the high end of that range.
Microchip’s quarterly earnings release is due on Thursday, February 5. The stock’s momentum is reflected in Benzinga’s Edge Rankings, where Microchip is placed in the 79th percentile. The Benzinga screener also enables comparative analysis with other companies in the sector.
Microchip’s stock performance is strong, with a 49.41% increase over the prior year as reported by Benzinga Pro. On the recent Monday, shares rose 2.85%, closing at $78.08.
Additional Sector Earnings: Intel and Micron Surpass Expectations
Intel Corporation reported revenue of $13.67 billion for the fourth quarter, exceeding Wall Street’s estimates of $13.37 billion. The company posted adjusted earnings of 15 cents per share, which notably surpassed the forecast of eight cents, despite a 4% year-over-year decline in total revenue.
Micron Technology also delivered strong results in its first quarter, with revenue reaching $13.64 billion and surpassing analyst expectations of $12.83 billion. Adjusted earnings per share stood at $4.78, outperforming the predicted $3.95. The company achieved approximately 20.5% revenue growth compared to the previous year, alongside a significant increase in operating cash flow to $8.41 billion from $5.73 billion in the last quarter and $3.24 billion a year ago. Micron generated $3.9 billion in adjusted free cash flow during this period.