What to Expect From Advanced Micro Devices' Q3 2024 Earnings Report

Barchart · 10/16 14:14

Santa Clara, California-based Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company, specializing in high-performance and adaptive processor technologies. With a market cap of $253.2 billion, it develops a comprehensive portfolio of CPUs, GPUs, FPGAs, and adaptive SoCs to support a wide range of computing platforms for cloud, edge, and end devices. It is expected to unveil its fiscal Q3 earnings results on Tuesday, Oct. 29.

Before the event, analysts anticipate AMD to report a profit of $0.71 per share, up nearly 34% from $0.53 per share in the same quarter last year. The company has consistently surpassed Wall Street's earnings projections in the past four quarters. AMD exceeded the consensus estimate by a 6.4% margin in the last reported quarter.

For fiscal 2024, analysts expect AMD to report EPS of $2.56, up 28.6% from $1.99 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 70.7% year-over-year, reaching $4.37.

Over the past 52 weeks, AMD's shares have risen 47.1%, outperforming the S&P 500 Index's ($SPX) 33.6% gain and the Technology Select Sector SPDR Fund's (XLK) 34.8% increase over the same period.

AMD's stock rose 4.4% following the release of its Q2 earnings release on Jul. 30, driven by stronger-than-expected financial results, including EPS of $0.69, surpassing Wall Street forecasts. The surge in stock price was primarily fueled by robust sales of its artificial intelligence (A.I.) chips, particularly the new MI300X chip, which generated over $1 billion in sales during the quarter. Additionally, the Data Center unit saw a 115% year-over-year revenue increase to $2.8 billion, exceeding analysts' expectations and reinforcing AMD's position as the second-largest vendor of data center GPUs behind Nvidia.

Analysts' consensus rating on AMD stock is bullish, with a "Strong Buy" overall rating. Out of 37 analysts covering the stock, opinions include 30 "Strong Buys," one "Moderate Buy," and six "Holds." This consensus is slightly more bullish than three months ago, with 29 “Strong Buy” ratings on the stock. Currently, AMD is trading below the average analyst price target of $193.06.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.