It’s the start of the busiest week of Q3 earnings season, and pre-market futures are up. Perhaps this is a sign of optimism for expected earnings, or perhaps it’s looking favorably on a parade of economic reports out this week. Pe
It’s the start of the busiest week of Q3 earnings season, and pre-market futures are up. Perhaps this is a sign of optimism for expected earnings, or perhaps it’s looking favorably on a parade of economic reports out this week. Pe
In today's video, I discuss Advanced Micro Devices (NASDAQ: AMD) and what semiconductor investors should watch during its upcoming earnings. Check out the short video to learn more, consider subscribing, and click the special offer link below.
Last week saw both bad news and good news come the way of Intel (NASDAQ: INTC) shareholders. Early in the week, Reuters reported that both Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) were at work designing Arm (NASDAQ: ARM)–based PC processors by 2025, in a cha
Semiconductor company Advanced Micro Devices
(
NASDAQ:AMD
) will release its third-quarter financial results on Tuesday, October 31. Analysts see a sequential and year-over-year improvement in its top and bottom lines in Q3, led by new product ramps across the Data Center and Client segments.
In a note to investors dated October 16,
TD Cowen analyst Matt Ramsay said, “After a 1H23 characterized by the dramatic shift in spending towards GenAI, we view headwinds as beginning to ease as evidenced by the company's 3Q guidance issued on the prior earnings call.” Encouraged by the company's forward guidance, Ramsay is bullish on AMD stock and has a price target of $135.
With this backdrop, let’s look at Wall Street’s consensus estimates for AMD’s third quarter.
AMD – Q3 Expectations
Wall Street expects AMD to post revenue of $5.70 billion in Q3, which compares favorably to the
prior-year quarter’s revenue of $5.57 billion. Moreover, analysts’ Q3 revenue projection shows a sequential improvement and is in line with the company’s guidance.
During the Q2 conference call, AMD’s management said that the Client and Data Center segments will register double-digit growth on a quarter-over-quarter basis in the third quarter. This is expected to boost the company’s overall revenue. However, the Gaming and Embedded divisions may continue to face challenges.
On the bottom line, analysts expect AMD to post earnings of $0.68 per share, compared to an EPS of $0.67 in the prior-year quarter. Moreover, AMD’s Q3 EPS is expected to show a sequential improvement. Notably, it reported an EPS of $0.58 in the second quarter.
As analysts see improved financial performance from AMD in Q3, let’s look at their recommendations ahead of Q3 earnings.
Is AMD Stock Expected to Rise?
Analysts see considerable upside potential in AMD stock over the next 12 months. Further, they remain bullish on the stock ahead of earnings.
AMD stock has received 22 Buys and seven Holds for a Strong Buy consensus rating. Meanwhile, the
average AMD stock price target of $137.29 implies 42.37% upside potential from current levels.
Insights from Options Trading Activity
Options traders are pricing in a +/- 8.17% move on earnings, greater than the previous quarter’s earnings-related move of -7.02%.
Bottom Line
AMD’s third-quarter financials are expected to get a boost from the easing of headwinds in the Data Center and Client segments. Moreover, new product launches will support its earnings growth. Over the long term, AMD sees multibillion-dollar growth opportunities led by strong demand for
AI (Artificial Intelligence). These positives are reflected in analysts’ bullish outlook on AMD stock.
Disclosure
Below is Validea's guru fundamental report for ADVANCED MICRO DEVICES, INC. (AMD). Of the 22 guru strategies we follow, AMD rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundam
Up until a few years ago, PCs almost exclusively ran on x86-based chips from Intel (NASDAQ: INTC) or AMD, not Arm-based chips using Arm Holdings' (NASDAQ: ARM) technology. In 2020, Apple officially made the switch from Intel CPUs to its own home-grown Arm-based chips for its Mac
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Below is Validea's guru fundamental report for ADVANCED MICRO DEVICES, INC. (AMD). Of the 22 guru strategies we follow, AMD rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundam
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