Advanced Micro Devices’ (AMD - Free Report) first-quarter 2022 results, to be reported on May 3, 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, in order to retain its competitive stance, are likely to have affected profitability.
Click here to know how the company’s overall Q1 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 Amazon’s (AMZN - Free Report) cloud arm, Amazon Web Services (AWS); Alphabet’s (GOOGL - Free Report) Google Cloud and Microsoft’s (MSFT - Free Report) Azure.
AWS expanded its EPYC-processor-based offerings with the general availability of general-purpose Amazon EC2 M6a instances. In the to-be-reported quarter, AWS introduced the EPYC-processor-based Amazon EC2 C6a instances.
Moreover, Microsoft Azure is using third-generation AMD EPYC processors in its latest Dasv5 and Easv5 Azure Virtual Machines.
Google Cloud’s latest C2D virtual machine offering has been powered by AMD’s EPYC processors.
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.
In fourth-quarter 2021, Enterprise, Embedded and Semi-Custom revenues of $2.2 billion were up 75% year over year and 17% sequentially.
The Zacks Consensus Estimate for the Enterprise, Embedded and Semi-Custom segment’s first-quarter revenues is pegged at $2.30 billion. The projection suggests an increase of 71.1% from the figure reported in the year-ago quarter.
Computing and Graphics Growth to Aid Top Line
AMD is expected to have witnessed steady demand for Ryzen processors in the first quarter due to the growing hybrid working environment.
During the to-be-reported quarter, AMD announced the full lineup of new Ryzen 6000 Series processors for laptops built on “Zen 3+” core architecture, together with all-new RDNA 2 architecture-based on-chip graphics.
AMD announced the new Ryzen 7 5800X3D desktop processor with 3D V-Cache technology, which is ideal for gaming. The company previewed the new Ryzen 7000 Series CPU powered by “Zen 4” architecture and using the new AM5 socket.
AMD also announced additions and enhancements to the Radeon graphics portfolio. Radeon RX 6000M Series mobile graphics family now includes Radeon RX 6850M XT, Radeon RX 6650M XT, Radeon RX 6650M, Radeon RX 6500M and Radeon RX 6300M mobile graphics. AMD also announced the new Radeon RX 6000S mobile graphics lineup — the Radeon RX 6800S, Radeon RX 6700S and Radeon RX 6600S.
For desktop PCs, AMD announced the Radeon RX 6500 XT and Radeon RX 6400 graphics cards.
The consensus mark for first-quarter revenues for this Zacks Rank #2 (Buy) company’s Computing and Graphics segment is pegged at $2.70 billion, which indicates an increase of 28.8% on a year-over-year basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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 >>
Advanced Micro Devices’ (AMD - Free Report) first-quarter 2022 results, to be reported on May 3, 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, in order to retain its competitive stance, are likely to have affected profitability.
Click here to know how the company’s overall Q1 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 Amazon’s (AMZN - Free Report) cloud arm, Amazon Web Services (AWS); Alphabet’s (GOOGL - Free Report) Google Cloud and Microsoft’s (MSFT - Free Report) Azure.
AWS expanded its EPYC-processor-based offerings with the general availability of general-purpose Amazon EC2 M6a instances. In the to-be-reported quarter, AWS introduced the EPYC-processor-based Amazon EC2 C6a instances.
Moreover, Microsoft Azure is using third-generation AMD EPYC processors in its latest Dasv5 and Easv5 Azure Virtual Machines.
Google Cloud’s latest C2D virtual machine offering has been powered by AMD’s EPYC processors.
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.
In fourth-quarter 2021, Enterprise, Embedded and Semi-Custom revenues of $2.2 billion were up 75% year over year and 17% sequentially.
The Zacks Consensus Estimate for the Enterprise, Embedded and Semi-Custom segment’s first-quarter revenues is pegged at $2.30 billion. The projection suggests an increase of 71.1% from the figure reported in the year-ago quarter.
Computing and Graphics Growth to Aid Top Line
AMD is expected to have witnessed steady demand for Ryzen processors in the first quarter due to the growing hybrid working environment.
During the to-be-reported quarter, AMD announced the full lineup of new Ryzen 6000 Series processors for laptops built on “Zen 3+” core architecture, together with all-new RDNA 2 architecture-based on-chip graphics.
AMD announced the new Ryzen 7 5800X3D desktop processor with 3D V-Cache technology, which is ideal for gaming. The company previewed the new Ryzen 7000 Series CPU powered by “Zen 4” architecture and using the new AM5 socket.
AMD also announced additions and enhancements to the Radeon graphics portfolio. Radeon RX 6000M Series mobile graphics family now includes Radeon RX 6850M XT, Radeon RX 6650M XT, Radeon RX 6650M, Radeon RX 6500M and Radeon RX 6300M mobile graphics. AMD also announced the new Radeon RX 6000S mobile graphics lineup — the Radeon RX 6800S, Radeon RX 6700S and Radeon RX 6600S.
For desktop PCs, AMD announced the Radeon RX 6500 XT and Radeon RX 6400 graphics cards.
The consensus mark for first-quarter revenues for this Zacks Rank #2 (Buy) company’s Computing and Graphics segment is pegged at $2.70 billion, which indicates an increase of 28.8% on a year-over-year basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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