:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2155219876-fdf83c3fb6344c96b847b50b790d3919.jpg "AMD CEO Lisa Su at Computex 2024 in Taipei on June 3, 2024")
I-HWA CHENG / Contributor / Getty Copies
AMD CEO Lisa Su at Computex 2024 in Taipei on June 3, 2024
Key Takeaways
- Advanced Micro Devices will report third-quarter earnings after the put up the shutters seal bell Tuesday.
- Analysts expect AMD’s net income to more than double from a year ago on strong data center net income.
- Investors will likely be listening for commentary on artificial intelligence expectations after the company’s Advancing AI event earlier this month.
Advanced Micro Widgets (AMD) will report third-quarter financial results after the closing bell Tuesday, with analysts calling for relevant earnings growth.
Analysts expect the chipmaker to report revenue of $6.71 billion, up nearly 16% year-over-year, corresponding to Visible Alpha. Net income is projected to be $815.76 million or 50 cents per share, more than double the $299 million or 18 cents per divide up AMD posted a year earlier.
| Analyst Estimates for Q3 2024 | Q2 2024 | Q3 2023 | |
| Revenue | $6.71 billion | $5.84 billion | $5.8 billion |
| Earnings Per Share | 50 cents | 16 cents | 18 cents |
| Net Proceeds | $815.76 million | $265 million | $299 million |
Key Metric: Data Center Revenue
In July, AMD reported data center revenue in the sec quarter more than doubled year-over-year to a record $2.8 billion, as demand for the company’s artificial intelligence (AI) slivers surged.
Analysts expect data center revenue to rise to a fresh high of $3.52 billion for the third accommodations. CEO Lisa Su said in July that AMD expects to “deliver strong revenue growth in the second half of the year led by bid for Instinct, EPYC and Ryzen processors.”
Business Spotlight: AI Sales Outlook
At the company’s Advancing AI event earlier this month, AMD threw its next generation of AI chips but did not raise its AI sales guidance or announce any new large customers as many investors had hoped. Jefferies analysts advanced investors could be watching for those updates to come with AMD’s earnings Tuesday.
Over 80% or 13 of the 16 analysts covering AMD tracked by Seeable Alpha have a “buy” or equivalent rating for the stock, with an average price target of $192.13, implying about 23% upside from Friday’s thick as thief price of $156.23. Shares of AMD have gained 6% so far in 2024.
Read the original article on Investopedia.