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AMD CEO Lisa Su delivers a keynote speech at Computex 2024 in Taipei, Taiwan, on June 3, 2024.
Key learning points
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Advanced Micro Devices will report second-quarter earnings after the market closes on Tuesday.
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Analysts expect sales and profits to increase compared to the same period last year.
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The chipmaker is set to report data center revenue, with analysts expecting a new record for the quarter.
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The company will also provide a forecast for the third quarter and could provide an updated forecast for full-year data center GPU revenue, which could boost investor sentiment for the stock.
Advanced micro devices (AMD) is expected to report its second-quarter earnings after the bell on Tuesday. Investors are likely to look for record growth in data centers and a strong outlook from the boom in artificial intelligence (AI).
The chipmaker is expected to report revenue of $5.74 billion, according to estimates compiled by Visible Alpha, which would represent growth of 7% from the same period last year. Net income is expected to come in at $342.76 million, or 21 cents per share, up from the second quarter of 2023.
|
Analyst estimates for Q2 2024 |
Q1 2024 |
Q2 2023 |
|
|
Gain |
$5.74 billion |
$5.47 billion |
$5.36 billion |
|
Diluted earnings per share |
21 cent |
7 cent |
2 cent |
|
Net income |
$342.76 million |
$123 million |
$27 million |
Key Metric: Data Center Growth
AMD is set to report revenue figures for its data center segment, with investors eyeing continued growth in AI demand.
In the first quarter, AMD’s data center division achieved record revenue of $2.3 billion, an 80% increase over the same period last year. This revenue was driven by sales of MI300 chips used for AI data centers.
Analysts expect data center revenue to reach $2.79 billion, according to Visible Alpha consensus estimates, a quarterly record for the segment.
Business Spotlight: Outlook and Investor Sentiment Amid the AI ​​Boom
AMD is set to report its third-quarter revenue guidance. Investors are likely to keep a close eye on the company, as sentiment around the stock is less favorable than many other AI chipmakers.
Investors are considering Nvidia (NVDA) and Broadcom (AVG) as favorite stocks within the semiconductor industry, while AMD was among the “most unpopular,” according to Citi analysts who recently spoke to investors to gauge their views on chipmaker stocks.
AMD’s third-quarter revenue outlook is expected to be $6.66 billion, according to consensus estimates compiled by Visible Alpha. If AMD’s guidance were to beat estimates, that could be a positive catalyst for the stock.
Goldman Sachs analysts expect AMD to issue a third-quarter outlook in line with consensus estimates. The analysts said they expect the chipmaker to raise its data center GPU revenue forecast to $4.5 billion from $4 billion, which could also improve investor sentiment.
AMD’s shares have fallen about 2% so far this year, closing at $144.63 on Wednesday.
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