AMD Revenue Reporting: What Can Investors Expect?

AMD Exceeds Expectations

The computer processor manufacturer AMD (NASDAQ:AMD) will announce its results this Tuesday after market close. In the last quarter, AMD reported $7.69 billion in revenue, exceeding analysts' revenue expectations by 3.4% and showing a year-over-year increase of 31.7%. The company has made significant improvements in inventory levels, and its revenue forecasts for the next quarter also met analysts' expectations at a higher level.

Should you buy or sell shares of AMD? In the last quarter, it should be noted that analysts expected AMD’s revenue to increase by 28.4% to $8.76 billion; this represents a clear improvement compared to the 17.6% increase recorded in the same quarter of the previous year. Adjusted earnings are expected to be around $1.17 per share.

Recent analyst reviews over the last 30 days predict that the company will continue to meet expectations, and AMD has a history of exceeding Wall Street’s forecasts by an average of 1.9% each time over the past two years.

When examining competitors in the processor and graphics chip segments, some have already released their Q3 results, which are shaping our expectations. Intel exceeded analysts' estimates by 3.7% with an annual revenue increase of 2.8%, while Penguin Solutions increased its revenue by 8.6% but fell short of expectations by 1.3%. Intel's stock price remained unchanged after the results, whereas Penguin Solutions experienced a 15.9% decline.

There is a positive sentiment among investors in the processor and graphics chip segment; stock prices have risen by an average of 3.1% over the past month. AMD, meanwhile, gained 26.1% in value during the same period, with analysts’ average price target set at $243.33 while the current stock price stands at $256.88.

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