9/24/2023 0 Comments Amd tickerThe company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It operates in four segments: Data Center, Client, Gaming, and Embedded segments. operates as a semiconductor company worldwide. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.Advanced Micro Devices, Inc. On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. So, feel free to hold your shares and don’t worry too much about the critics and complainers. Folks who bet against AMD generally don’t win in the long run. I’ve previously targeted $150 for AMD stock, and I’m sticking to that call. And there’s no denying that AMD remains highly active in developing next-generation AI chips. The company’s second-quarter results were mostly positive. These aren’t sufficient reasons to give up on AMD, though. Moreover, AMD’s decline in Data Center revenue is worth noting. The company might not reach its revenue objective, which relies heavily on AI chip revenue. I’m willing to acknowledge the complaints about AMD. “The Bulls want AMD to be the next concept stock … the Bears say show me the results and make me believe the AI hype,” Chan stated. Meanwhile, Summit Insights Group analyst Kinngai Chan sees both sides of the bull-bear issue. “Unless numbers get really material, soon, we fear estimates remain too high and the stock … looks a little stretched to us,” they warned. Of course, the company’s AI chip revenue will play a significant role in achieving that goal.īernstein analysts apparently aren’t fully convinced that AMD will reach that objective, though. I was shocked to see a Reuters report declaring, “AMD shares fall as analysts worry AI chip targets may be ambitious.” Usually, analysts cheer high expectations, but this seems to be an exception.įor the current quarter, AMD expects to generate revenue of around $5.7 billion plus or minus $300 million. A more interesting complaint, though, pertains to AMD’s ambitions in the AI chip market. Hopefully, that issue will be resolved in the coming quarters. Regarding this disappointing result, AMD cited “lower 3rd Gen EPYC processor sales as Enterprise demand was soft and Cloud inventory levels were elevated at some customers.” In particular, AMD’s Data Center segment revenue declined 11% year over year to $1.3 billion. There was a notable hiccup in AMD’s quarterly results, I’ll admit. Given AMD’s earnings beat, what could anyone possibly complain about? And, why would financial traders sell AMD stock after the release of the quarterly results? Notable Complaints About AMD “Our AI engagements increased by more than seven times in the quarter,” Su boasted.Īll of this raises a couple of questions. Personally, I expect the stock to go higher than $136 - but more on that topic in a moment.Īs you might expect, CEO Lisa Su emphasized AMD’s progress as a prime AI chip developer. Also, AMD’s quarterly revenue of $5.36 billion surpassed Wall Street’s call for $5.32 billion.Īnalysts with Citigroup called the results “good” and upgraded AMD stock from “neutral” to “buy,” while raising its price target on the shares from $120 to $136. Specifically, AMD reported earnings per share ( EPS) of 58 cents, beating the analyst consensus estimate of 57 cents. That surprised me, especially since AMD exceeded Wall Street’s sales and profit forecasts. Much to the shareholders’ chagrin, AMD stock fell after the company announced its second-quarter 2023 results. Is it possible for AMD to be too ambitious with its artificial intelligence ( AI) chip targets? Some analysts might complain that AMD is aiming too high, but I believe that this chip champ can continue to beat the Street and produce game-changing, AI-enabled processors. The chipmaker’s quarterly results should convince clear-minded shareholders to stay invested. Don’t lose faith in AMD stock yet, though. In August 2023, Advanced Micro Devices (NASDAQ: AMD), commonly known as just AMD, might seem like a former market darling that has lost its mojo.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |