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What You Need to Know Ahead of AMD’s Earnings

Harry October 27, 2024

Key Takeaways

Advanced Micro Devices will report third-quarter earnings after the closing bell on Tuesday.
Analysts expect AMD’s net revenue to more than double from a year ago, thanks to strong data center revenue.
Investors will likely hear commentary on AI prospects after the company’s Advancing AI event earlier this month.

Advanced Micro Devices (AMD) will report third-quarter financial results after the closing bell on Tuesday, with analysts calling for significant earnings growth.

Analysts expect the chipmaker to report revenue of $6.71 billion, up about 16% year-over-year, according to Visible Alpha. Net income is expected to be $815.76 million, or 50 cents per share; That’s more than double the $299 million, or 18 cents per share, that AMD posted a year ago.

	Analyst Predictions for the 3rd Quarter of 2024	2nd Quarter 2024	3rd Quarter 2023
Revenues	$6.71 billion	$5.84 billion	$5.8 billion
Earnings Per Share	50 cents	16 cents	18 cents
Net income	$815.76 million	$265 million	$299 million

Key Metric: Data Center Revenue

In July, AMD reported data center revenue more than doubled in the second quarter compared to the same period last year. record 2.8 billion dollars as the company’s request artificial intelligence (AI) The chips are up.

Analysts expect data center revenue to hit a new high in the third quarter, rising to $3.52 billion. CEO Lisa Su said in July that AMD expects to “deliver strong revenue growth in the second half of the year, led by demand for its Instinct, EPYC and Ryzen processors.”

Job Summary: AI Sales Outlook

at the company’s site Advancing artificial intelligence Earlier this month, AMD launched its next-generation AI chips but didn’t raise its AI sales guidance or announce major new customers as many investors had hoped. Jefferies analysts suggest investors may I’m watching these updates It will come with AMD’s earnings on Tuesday.

More than 80%, or 13 of 16 analysts covering AMD tracked by Visible Alpha, have a “buy” or equivalent rating on the stock; The average price target is $192.13, implying an upside of approximately 23% from Friday’s closing price of $156.23. AMD’s shares are up 6% so far in 2024.