Semiconductor giant Advanced Micro Devices (AMD - Free Report) is set to report first-quarter earnings results on Tuesday after the close. AMD, a Zacks Rank #2 (Buy), has surpassed the earnings mark in each of the last four quarters. But with shares pulling back recently amid sector weakness, is AMD a buy?
AMD is expected to post a profit of $0.60/share, which would reflect a flat outcome versus the same quarter last year. Estimates for the quarter have increased 1.69% over the past 60 days. Sales are projected to have risen 1.24% to $5.42 billion. The company has delivered a trailing four-quarter average earnings surprise of 2.96%.
The tech powerhouse faces significant hurdles including weakness in its Gaming division. The company also continues to experience significant competition from Nvidia in the GPU market.
Another obstacle that was recently announced is China’s growing technological decoupling. China will keep AMD processors out of government PCs and servers moving forward in an effort to buoy domestic technology in the face of U.S.-led restrictions on exports.
Earnings reactions can be extremely volatile and are based on a wide variety of factors. Our proprietary Zacks Earnings ESP (Expected Surprise Prediction) calls for another earnings beat for the upcoming announcement. Still, investors should exercise prudence ahead of the quarterly results.
Research Chief 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.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Semiconductor giant Advanced Micro Devices (AMD - Free Report) is set to report first-quarter earnings results on Tuesday after the close. AMD, a Zacks Rank #2 (Buy), has surpassed the earnings mark in each of the last four quarters. But with shares pulling back recently amid sector weakness, is AMD a buy?
AMD is expected to post a profit of $0.60/share, which would reflect a flat outcome versus the same quarter last year. Estimates for the quarter have increased 1.69% over the past 60 days. Sales are projected to have risen 1.24% to $5.42 billion. The company has delivered a trailing four-quarter average earnings surprise of 2.96%.
The tech powerhouse faces significant hurdles including weakness in its Gaming division. The company also continues to experience significant competition from Nvidia in the GPU market.
Another obstacle that was recently announced is China’s growing technological decoupling. China will keep AMD processors out of government PCs and servers moving forward in an effort to buoy domestic technology in the face of U.S.-led restrictions on exports.
Earnings reactions can be extremely volatile and are based on a wide variety of factors. Our proprietary Zacks Earnings ESP (Expected Surprise Prediction) calls for another earnings beat for the upcoming announcement. Still, investors should exercise prudence ahead of the quarterly results.
Research Chief 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.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Get the latest research report on AMD - FREE