Superior Micro Units Inc. is because of report third-quarter outcomes Tuesday afternoon, however traders seemingly are trying far past the newest quarter.
Synthetic intelligence continues to rule the day within the semiconductor business, however for AMD
AMD,
AI is extra of a 2024 story. Within the meantime, Rosenblatt Securities analyst Hans Mosesmann expects the corporate to submit an in-line third quarter, reflecting power within the information heart that helps offset weak point in areas like enterprise and PC gaming.
Opinion: Sluggish EV and conventional automotive gross sales might proceed subsequent yr, based mostly on what these chip makers simply mentioned
“We anticipate AMD to strike a bullish posture in all strategic product areas together with the brand new MI300A/X APU/GPU compute accelerators which we see as being way more aggressive than [Wall] Avenue believes,” he wrote, referring to accelerated processing models and graphics processing models.
Right here’s what else to look out for in AMD’s report.
What to anticipate
Earnings: Analysts tracked by FactSet anticipate AMD to submit 68 cents a share in adjusted earnings, up a smidge from 67 cents a share a yr earlier than.
Income: The FactSet consensus requires $5.7 billion in third-quarter income, practically flat with the year-prior complete of $5.6 billion.
Inventory motion: AMD shares have fallen after 4 of the corporate’s previous 5 earnings studies, together with the newest one, once they dropped 7% within the session instantly following the outcomes. The inventory is up 50% up to now this yr, whereas the S&P 500
SPX
has elevated 9%.
See additionally: Wolfspeed’s inventory rallies as firm notches smaller loss than anticipated
What analysts are saying
- “We anticipate slight upside to [third-quarter results] and [a] largely in-line-with-consensus [fourth-quarter] outlook. We consider PC tracked barely higher and information heart tracked in line. We’re modeling $300-400 [million] contribution from MI300 GPU in [the fourth quarter], primarily from El Capitan supercomputer, which is a one-time challenge.” — Raymond James analyst Srini Pajjuri
- “AMD’s [calendar third-quarter] estimates must be achievable, notably assuming some profit from enhancing shopper PC shipments. The danger relatively, in our view, is CQ4 (and maybe CQ1). The ramp of El Capitan ought to present AMD some momentum; nonetheless, we’re much less clear that AMD can hit elevated expectations, which we consider will finally require higher server CPU shipments in gentle of continued weak point in [cloud-service-provider] spend.” — Wedbush analyst Matt Bryson
- “The AMD narrative feels all about their datacenter (and, notably, their AI story) proper now. Within the close to time period the achievability of their [second-half] datacenter progress (guided to 50% half over half) would be the query (we predict the expansion into year-end is believable as most of it’s seemingly from El Capitan however Q1 estimates could bear some watching), although CPU share as Genoa lastly hit crossover can even be high of thoughts.” — Bernstein analyst Stacy Rasgon
