How did Pixelworks' Q2 2025 revenue compare to the same quarter last year and to analyst expectations?

Revenue performance

Pixelworks posted $112.3 million in Q2 2025, up 19 % versus the $94.2 million recorded in Q2 2024. The sequential growth was modest, with a 3 % rise from the prior quarter’s $108.9 million. However, the result fell short of the consensus Street view, which had been forecasting roughly $118 million (mid‑range of the $115‑$121 million analyst poll). The shortfall was driven by a slower‑than‑expected ramp in its new AI‑enhanced image‑processing platform, while the core display‑processor line held steady.

Trading implications

The sub‑expectation top line has already been priced into the stock, which has been on a down‑trend since the March earnings dip (down ~12 % from the 52‑week high). The upside‑bias now hinges on whether the company can accelerate adoption of its AI‑driven solutions and deliver the incremental margin upside that analysts are still banking on. From a technical standpoint, the shares are testing the $28.00 – $28.50 resistance band; a break above $28.50 with volume could signal that the market is re‑rating the growth story and may open a short‑term bounce. Conversely, a retest of the $26.80 support level would keep the downside narrative intact, especially if management guidance for Q3 remains muted.

Actionable view

Given the revenue miss and the price‑action in a weakening trend, a cautious short‑position or a tight‑range trade around $27.00–$28.00 is prudent. If the stock rallies above $28.50 on strong forward‑looking guidance (e.g., higher‑than‑expected AI platform bookings), consider a long entry with a stop just below $27.00. Otherwise, maintain a short bias with a stop at $28.00 to protect against any unexpected upside catalyst.