Advanced Micro Devices is scheduled to report its third-quarter financial results after the market closes on Tuesday. Here is what to know.
REVENUE: The semiconductor company is expected to report $13.10 billion in sales, compared with $9.25 billion in the prior-year quarter, according to FactSet.
NET PROFIT: The Santa Clara, Calif.-based company is expected to post a profit of $2.35 billion, compared with a profit of $1.24 billion the year before, according to FactSet.
ADJUSTED EARNINGS PER SHARE: Adjusted earnings are expected to come in at $1.95 a share, compared with $1.20 a share the prior year.
The stock has more than doubled this year, and recently traded at $492.20.
WHAT TO WATCH
--AMD shares are down 22% over the past month, as it has been swept up in a tech selloff in recent weeks. Investors are worried about hyperscalers' debt-fueled spending on AI infrastructure. Last week, Intel issued a disappointing forecast for the current quarter, warning of soft PC demand and tight supply. The guidance has implications for AMD, which is exposed to the PC and server CPU markets.
--StoneX analysts cut their forecasts for AMD following Intel's report of slowing PC orders, as well as Microsoft's decline in revenue from PC manufacturers paying for Windows. Higher memory prices have increased PC prices, prompting manufacturers to reduce volume plans and component orders, the StoneX analysts say.
--Some analysts are more optimistic, expecting better results driven primarily by data center business. AMD counts Meta and OpenAI among its lead customers, and both companies are expected to begin their first AMD data center deployments in the second half of this year, Susquehanna analysts say. The analysts expect AMD's data center GPU revenue will reach $41 billion in 2027.
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