Universal Display Corp (OLED) combines strong fundamentals with a bullish technical setup. Its leadership in OLED tech, high profitability, and debt-free balance sheet support growth, while its chart suggests a potential price surge.
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the analog semiconductors industry, including Impinj (NASDAQ:PI) and its peers.
As the regular session of the US market concludes on Tuesday, let's get an insight into the after-hours session and identify the stocks leading the pack in terms of gains and losses.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how analog semiconductors stocks fared in Q2, starting with Universal Display (NASDAQ:OLED).
Semiconductors are the picks and shovels of modern technology. The way we live and work is also changing with AI, which is creating secular demand for more powerful chips.
As a result, the industry has seen solid stock price performance over the last six months as its gain of 14.1% has outpaced the S&P 500’s 8.6% return.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
A number of stocks jumped in the afternoon session after the semiconductor sector continued to rally as a favorable July inflation report boosted investor confidence for a potential Federal Reserve interest rate cut in September. Lower-than-expected inflation data for July increased market expectations for a Federal Reserve interest rate cut next month, with futures markets pricing in a 96.2% probability. A potential rate cut lowers borrowing costs, which is particularly beneficial for growth-oriented sectors like technology and semiconductors as it can fuel investment and expansion.
Universal Display’s second quarter reflected stronger-than-expected demand, with management attributing growth to increased adoption of OLED technology across consumer electronics, automotive, and IT markets. CEO Steven Abramson highlighted that expanding product portfolios and rising use in tablets, laptops, and monitors were key contributors. Management also noted that recent industry events, such as Display Week, showcased how OLED innovation is driving new form factors, including foldable and rollable devices, further enhancing the company’s addressable market.
OLED provider Universal Display (NASDAQ:OLED) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 8.4% year on year to $171.8 million. The company’s full-year revenue guidance of $675 million at the midpoint came in 0.7% above analysts’ estimates. Its non-GAAP profit of $1.41 per share was 20.5% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the semiconductor sector rallied in intraday trading as a favorable inflation report bolstered investor hopes for a potential Federal Reserve interest rate cut. The latest Consumer Price Index (CPI) data showed a slowdown in inflation, fueling a broad market rally that pushed the S&P 500 and Nasdaq to new all-time highs. For the capital-intensive semiconductor industry, the prospect of lower interest rates is particularly welcome, as it can reduce borrowing costs for expansion and research and development. The positive macroeconomic sentiment provided a significant tailwind for the entire sector, as investors anticipate that a more accommodative monetary policy from the central bank will stimulate economic growth and demand for technology.
UNIVERSAL DISPLAY CORP (NASDAQ:OLED) offers strong growth, fair valuation, and solid financials, making it a top pick for GARP investors. Explore its potential in OLED tech.
Semiconductor manufacturer Vishay Intertechnology (NYSE:VSH) will be reporting results this Wednesday before market hours. Here’s what investors should know.
OLED provider Universal Display (NASDAQ:OLED) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 8.4% year on year to $171.8 million. The company’s full-year revenue guidance of $675 million at the midpoint came in 0.7% above analysts’ estimates. Its GAAP profit of $1.41 per share was 21.2% above analysts’ consensus estimates.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
UNIVERSAL DISPLAY CORP (NASDAQ:OLED) offers strong growth, solid profitability, and reasonable valuation, making it a standout in affordable growth stocks.
