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With a massive market cap of $245 billion, Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company specializing in high-performance and adaptive processor technologies across various markets. The California-based company is expected to release its fiscal Q2 earnings results after the market closes on Tuesday, Jul. 30.
Ahead of this event, analysts project the chipmaker giant to report a profit of $0.47 per share, reflecting a 17.5% increase from $0.40 per share in the year-ago quarter. The company has consistently surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. In the most recent quarter, AMD posted an EPS of $0.43, surpassing the consensus estimate by 4.9% due to stronger-than-expected data center revenue.
For fiscal 2024, analysts forecast AMD to report EPS of $2.60, up 30.7% from $1.99 in fiscal 2023. Looking ahead to fiscal 2025, analysts anticipate a robust annual growth rate of 68.5%, with projected EPS reaching $4.38.
Advanced Micro Devices surged 38.6% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 20.6% gain and the S&P Semiconductor SPDR's (XSD) 8.5% increase over the same period.
Despite beating Q1 earnings estimates on Apr. 30, AMD shares tumbled 8.9% the following day because its $4 billion AI chip sales forecast for fiscal 2024 fell short of Wall Street's expectations. Investors were disappointed by the slower ramp-up in AI-related product demand compared to its rival, Nvidia (NVDA), which contributed to the decline. However, the company’s recent $665 million acquisition of Silo AI, the largest AI lab in Europe, is part of its broader strategy to compete with Nvidia.
Analysts' consensus view on Advanced Micro Devices stock is bullish, with a "Strong Buy" rating overall. Out of 35 analysts covering the stock, 28 suggest a "Strong Buy," one advises "Moderate Buy," and six recommend a "Hold."
The above consensus has remained relatively steady over the past three months. The average analyst price target for AMD is $197.78, suggesting a modest potential upside of 30.5% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
