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Tariffs on Chinese goods are without a doubt affecting U.S. chip makers, many of whom serve the extensive Chinese semiconductor market. A recent survey of chip distributors by Morgan Stanley (MS) showed that 60% of respondents said that tariffs had affected order trends, and nearly 44% said that it negatively impacted customer orders and inventory behavior.
Tariffs are thus bad news for Advanced Micro Devices, Inc. (AMD - Free Report) as well, which is set to report third-quarter earnings results on Oct 24. After all, the semiconductor company did see its shares tumble 19% so far this month. AMD’s stock has now slipped into correction after peaking in September following the launch of its Radeon Pro V340 server card in late August.
However, analysts seem to be upbeat about the chipmaker’s quarterly results and prospects next year.
Street Predicts Price Gain
AMD is slated to post solid results, thanks to rival Intel Corporation’s (INTC - Free Report) recent chip shortage due to capacity constraint. Intel, last month, admitted to “tight supply conditions” for its chips due to better-than-expected PC sales. By the way, delay of Intel’s 10nm manufacturing process has helped AMD gain traction in the server and PC markets for both near and long term.
Intel over and over again suffered from delays in moving to the 10nm manufacturing technology, while its major competitor AMD expects to start producing 7nm chips next year. Needless to say, smaller nanometer chip making technologies have helped companies create faster and more efficient chips.
Not only is AMD and its new range of products capable of posing tough competition to Intel, the chip maker will for certain deliver another earnings beat this time on increasing prominence of artificial intelligence.
Earnings Beat on the Cards
AMD, a Zacks Rank #3 (Hold) company, currently has an Earnings ESP of +2.63%. This is Zacks’ proprietary methodology for determining stocks that have the best chance to surprise with their next earnings announcement. It provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advanced Micro Devices, Inc. Price and EPS Surprise
AMD is widely expected to report 11 cents of earnings per share for the third quarter, higher than the reported earnings of 8 cents a year ago. The company’s current-year earnings are expected to rise a whopping 188.2%, way higher than the industry’s rise of 14.8%. The Zacks Consensus Estimate for earnings has trended upward over the past 60 days, as estimates have risen from 47 cents/share two months ago to 49 cents/share right now.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
AMD Stock Looks Good Ahead of Q3 Earnings Report
Tariffs on Chinese goods are without a doubt affecting U.S. chip makers, many of whom serve the extensive Chinese semiconductor market. A recent survey of chip distributors by Morgan Stanley (MS) showed that 60% of respondents said that tariffs had affected order trends, and nearly 44% said that it negatively impacted customer orders and inventory behavior.
Tariffs are thus bad news for Advanced Micro Devices, Inc. (AMD - Free Report) as well, which is set to report third-quarter earnings results on Oct 24. After all, the semiconductor company did see its shares tumble 19% so far this month. AMD’s stock has now slipped into correction after peaking in September following the launch of its Radeon Pro V340 server card in late August.
However, analysts seem to be upbeat about the chipmaker’s quarterly results and prospects next year.
Street Predicts Price Gain
AMD is slated to post solid results, thanks to rival Intel Corporation’s (INTC - Free Report) recent chip shortage due to capacity constraint. Intel, last month, admitted to “tight supply conditions” for its chips due to better-than-expected PC sales. By the way, delay of Intel’s 10nm manufacturing process has helped AMD gain traction in the server and PC markets for both near and long term.
Intel over and over again suffered from delays in moving to the 10nm manufacturing technology, while its major competitor AMD expects to start producing 7nm chips next year. Needless to say, smaller nanometer chip making technologies have helped companies create faster and more efficient chips.
Not only is AMD and its new range of products capable of posing tough competition to Intel, the chip maker will for certain deliver another earnings beat this time on increasing prominence of artificial intelligence.
Earnings Beat on the Cards
AMD, a Zacks Rank #3 (Hold) company, currently has an Earnings ESP of +2.63%. This is Zacks’ proprietary methodology for determining stocks that have the best chance to surprise with their next earnings announcement. It provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advanced Micro Devices, Inc. Price and EPS Surprise
Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. Quote
AMD is widely expected to report 11 cents of earnings per share for the third quarter, higher than the reported earnings of 8 cents a year ago. The company’s current-year earnings are expected to rise a whopping 188.2%, way higher than the industry’s rise of 14.8%. The Zacks Consensus Estimate for earnings has trended upward over the past 60 days, as estimates have risen from 47 cents/share two months ago to 49 cents/share right now.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>