Advanced Micro Devices' (AMD - Free Report) third-quarter 2021 results, to-be-reported on Oct 26, are expected to have benefited from the ongoing momentum in EPYC processors and semi-custom products’ sales.
However, higher investments by AMD on product development and platform to retain its competitive stance against the likes of Intel (INTC - Free Report) and NVIDIA (NVDA - Free Report) are likely to have affected profitability.
Click here to know how the company’s overall Q3 performance is expected to be.
Strong Demand for EPYC Processors: Key Catalyst
AMD has been clinching new deal wins for its EPYC processors from data centers, cloud and high-performance computing companies, including Hewlett-Packard Enterprise, Amazon Web Services (AWS), Alphabet’s (GOOGL - Free Report) Google Cloud and Microsoft’s Azure.
AMD’s increased server share is expected to have driven top-line growth in the to-be-reported quarter. AMD is riding on strong demand for both second- and third-generation EPYC processors.
Semi-custom revenues in the third quarter are anticipated to benefit from strong demand for Xbox Series X, Xbox Series S and PlayStation 5 gaming consoles.
In second-quarter 2021, Enterprise, Embedded and Semi-Custom revenues of $1.60 billion were up 183% year over year and 19% sequentially.
The Zacks Consensus Estimate for the Enterprise, Embedded and Semi-Custom segment’s third-quarter revenues is pegged at $1.80 billion. The projection suggests an increase of 58.3% from the figure reported in the year-ago quarter.
Computing and Graphics to Aid Top Line
AMD is expected to have witnessed steady demand for Ryzen processors in the third quarter due to the extension of the work-from-home and online-learning set up.
The consensus mark for revenues for this Zacks Rank #2 (Buy) company’s Computing and Graphics segment for the third quarter is pegged at $2.27 billion, which indicates an increase of 36.2% on a year-over-year basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, slowing PC shipments’ in the third quarter of 2021, due to component shortage, is expected to have hurt AMD’s performance in the to-be-reported quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Advanced Micro Devices' (AMD - Free Report) third-quarter 2021 results, to-be-reported on Oct 26, are expected to have benefited from the ongoing momentum in EPYC processors and semi-custom products’ sales.
However, higher investments by AMD on product development and platform to retain its competitive stance against the likes of Intel (INTC - Free Report) and NVIDIA (NVDA - Free Report) are likely to have affected profitability.
Click here to know how the company’s overall Q3 performance is expected to be.
Strong Demand for EPYC Processors: Key Catalyst
AMD has been clinching new deal wins for its EPYC processors from data centers, cloud and high-performance computing companies, including Hewlett-Packard Enterprise, Amazon Web Services (AWS), Alphabet’s (GOOGL - Free Report) Google Cloud and Microsoft’s Azure.
AMD’s increased server share is expected to have driven top-line growth in the to-be-reported quarter. AMD is riding on strong demand for both second- and third-generation EPYC processors.
Semi-custom revenues in the third quarter are anticipated to benefit from strong demand for Xbox Series X, Xbox Series S and PlayStation 5 gaming consoles.
In second-quarter 2021, Enterprise, Embedded and Semi-Custom revenues of $1.60 billion were up 183% year over year and 19% sequentially.
The Zacks Consensus Estimate for the Enterprise, Embedded and Semi-Custom segment’s third-quarter revenues is pegged at $1.80 billion. The projection suggests an increase of 58.3% from the figure reported in the year-ago quarter.
Computing and Graphics to Aid Top Line
AMD is expected to have witnessed steady demand for Ryzen processors in the third quarter due to the extension of the work-from-home and online-learning set up.
The consensus mark for revenues for this Zacks Rank #2 (Buy) company’s Computing and Graphics segment for the third quarter is pegged at $2.27 billion, which indicates an increase of 36.2% on a year-over-year basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, slowing PC shipments’ in the third quarter of 2021, due to component shortage, is expected to have hurt AMD’s performance in the to-be-reported quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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