By Sam Boughedda
Ahead of Advanced Micro Devices' (NASDAQ:AMD) earnings report on Tuesday, August 2, a Susquehanna analyst stated that despite Intel's (NASDAQ:INTC) challenged print, they believe "AMD will fare much better."
In a note to investors, the analyst said the firm remains bullish on AMD, maintaining a Positive rating on the stock but lowering the price target from $120 to $115.
"While AMD reiterated their 2022 guidance at their Analyst Day, we believe the outlook (particularly for PC) may have weakened since. While AMD PC may show signs of weakness at the edges, we expect a different narrative for AMD server," wrote the analyst.
Susquehanna expects second-quarter numbers to be in-line, but sees potentially larger risks for the third quarter, "but nothing similar to the magnitude of Intel's large miss."
Elsewhere, a UBS analyst said in a note that they expect results and guidance on the server side to be "very strong."
However, "a materially weaker PC environment likely drives AMD to take a more conservative tack and trim the full year - potentially to up ~50% v current +60% Y/Y," explained the analyst, who maintained a Neutral rating and $110 price target on AMD shares.
"Though it likely cuts full year due to elevated customer inventory and weakening demand, the picture for INTC is much worse because some large customers appear to have bought ahead of price increases, which actually sucked some demand forward. The dynamic for AMD seems more straightforward," he added.
AMD shares are trading 3.5% higher Monday.