Mrzorro
10-28

I believe AMD and ON will continue rally 🚀🚀🚀

AMD's business is about more than just AI, even though the data-center market is by far its business revenue line, and the one expected to show the fastest growth. Analysts tracked by FactSet expect $6.71 billion in overall revenue for the third quarter, which would be up 16% from a year before. Data-center revenue is projected to climb 118% to $3.49 billion.

While AMD is expected to see about 20% growth in its client business, which captures personal computing, other areas are expected to post steep declines. For instance, analysts model a 62% drop in gaming revenue and a 26% fall in embedded revenue, translating to $576 million and $916 million, respectively.

AI has been a red-hot theme for the chip sector this year, but many areas outside of AI have been weak. Over the course of 2024, AMD's stock hasn't performed like those of some other AI players, reflecting how AMD's AI business hasn't yet lived up to lofty expectations and how the company still gets meaningful contributions from other segments that are in sharp decline.

AMD's stock is up just 6% so far this year, trailing the S&P 500's SPX 22% ascent. The increase in AMD's stock price pales in comparison to Nvidia's 186% surge and Broadcom Inc.'s 55% rally.

Shares of AMD gained 4% after the company's last report, and they declined following the two prior reports.

From a profit perspective, analysts model 92 cents in adjusted earnings per share for the third quarter, up from 70 cents a year before. Analysts expect the company to see $1.17 in adjusted EPS on sales of $7.55 billion for the fourth quarter.


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AMD Guidance Misses: Will it Hit $130 This Time?
AMD's Q3 revenue grew by 18% year-over-year to $6.82 billion, surpassing market expectations of $6.71 billion. Adjusted earnings per share came in at $0.92, in line with market expectations. However, the Q4 guidance fell short of expectations, dampening the enthusiasm surrounding AI chip demand. -------------------- What's your target price? Would you bottom AMD at $150 or lower prices? Will AMD drop to $130?
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