Advanced Micro Devices (NASDAQ:AMD) is set to unveil its third-quarter results, with investors keenly watching for signs of how the company's long-term prospects are shaping up. The unfolding AI-driven future of the semiconductor industry is expected to significantly impact AMD by 2024, according to industry experts.
Rosenblatt Securities predicts a steady Q3 for AMD, with the strength in the data center segment offsetting underperformance in areas such as enterprise and PC gaming. It also anticipates AMD to adopt a bullish stance towards all strategic product areas, particularly the new MI300A/X APU/GPU compute accelerators.
The FactSet consensus forecasts AMD's adjusted earnings at 68 cents per share and Q3 revenue at $5.7 billion, mirroring last year's figures. This comes despite a 7% drop in the stock post-results and similar trends observed in four of the past five reports.
However, on a year-to-date basis, AMD stock has surged 50%, significantly outperforming the S&P 500's 9% rise. This rally underscores investor confidence in AMD's potential despite short-term fluctuations.
In other market observations within the semiconductor industry, sluggish sales have been reported in both electric vehicle (EV) and traditional car segments. On the other hand, Wolfspeed (NYSE:WOLF) stock has been rallying, while losses across the sector have been smaller than initially anticipated.
InvestingPro Insights
InvestingPro's real-time data and tips offer further insights into AMD's financial standing. With a market cap of $157.25B, AMD has a prominent position in the Semiconductors & Semiconductor Equipment industry. AMD's revenue for the last twelve months as of Q2 2023 was $21.88B, with a slight growth of 1.39%. However, the quarterly revenue growth for Q2 2023 was down by -18.18%.
InvestingPro Tips suggest that while AMD's net income is expected to grow this year, there has been a declining trend in earnings per share. Despite this, AMD has been a high return player over the last year, decade, and five years. It's worth noting that AMD operates with a moderate level of debt and its liquid assets exceed short term obligations.
For those seeking more in-depth analysis, InvestingPro offers an additional 10 tips for AMD and other companies. This valuable information can help investors make informed decisions about their portfolios.
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