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Advanced Micro Devices Q2 Preview: Time to Buy?

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It’s the busiest week of earnings season, with an extensive list of companies scheduled to unveil their quarterly results.

There are several notable names on the reporting docket, including the highly-followed Advanced Micro Devices (AMD - Free Report) . AMD shares have been big-time outperformers in 2023 so far, up more than 70% following a brutal 2022 showing.

But how does the semiconductor titan stack up heading into its quarterly release? Let’s take a closer look at expectations and results from a few other chip players, including NXP Semiconductors (NXPI - Free Report) and Intel (INTC - Free Report) , as a light guide.

Intel

Intel posted better-than-expected Q2 results, exceeding the Zacks Consensus EPS Estimate by more than 420%. Quarterly revenue totaled $12.9 billion, 8% ahead of expectations and down from the year-ago quarter.

The market took the results in stride, with Intel shares finding plenty of buyers post-earnings. Impressively, both top and bottom line results exceeded the higher end of previous guidance.

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Image Source: Zacks Investment Research

NXP Semiconductors

NXP Semiconductors also posted better-than-expected top and bottom line results, exceeding EPS expectations by 5% and delivering a 3% revenue beat. Similar to INTC, the company’s revenue results were at the high end of previous guidance, undoubtedly a positive.  

And the market took the results well, with NXPI shares seeing bullish activity post-earnings.

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Image Source: Zacks Investment Research

Advanced Micro Devices

Analysts have been silent for the quarter to be reported over the last several months, with the $0.57 per share estimate unchanged. The value reflects a 45% pullback in earnings from the year-ago quarter.

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Image Source: Zacks Investment Research

The story remains primarily the same regarding the top line, with the $5.3 billion quarterly estimate down a fractional 0.1% since the beginning of May. Sales are forecasted to decline along with earnings, with the estimate suggesting an 18% pullback year-over-year.

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Image Source: Zacks Investment Research

In addition, AMD has been a consistent earnings performer as of late, exceeding both earnings and revenue expectations in nine of its last ten releases. Just in its latest print, AMD delivered a 7% EPS beat paired with a modest revenue surprise.

It’s worth noting that the market has been impressed with the last two releases, with AMD shares seeing notable bullish momentum post-earnings. This is illustrated by the green arrows circled in the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

Investors will closely be monitoring AMD’s Data Center results, especially as Wall Street continues to obsess over artificial intelligence (AI). For the quarter to be reported, the Zacks Consensus Estimate for Data Center revenue stands at $1.3 billion, implying a pullback of roughly 9% from the year-ago quarter.

Putting Everything Together

Investors will closely be monitoring AMD’s quarterly results, as the stock has become a household name in the semiconductor space.

Several other semiconductor names, including Intel (INTC - Free Report) and NXP Semiconductors (NXPI - Free Report) , have already unveiled their respective quarterly results, with both companies posting better-than-expected results and seeing buying pressure post-earnings.

For Advanced Micro Devices’ (AMD - Free Report) quarter to be reported, analysts have primarily left their top and bottom line expectations unchanged, with both earnings and revenue forecasted to pull back from the year-ago quarter.


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