AMD: What Wall Street Thinks Ahead of Earnings

AMD: What Wall Street Thinks Ahead of Earnings

Advanced Micro Devices  (AMD) – Get Report was rising Monday as the company was the subject of multiple notes from Wall Street firms ahead of earnings from the chipmaker on Tuesday.

Wall Street expects AMD to post quarterly earnings of 47 cents a share on revenue of $3.02 billion.  

Here are two examples of Wall Street is saying about the company. 

RBC Capital (Outperform rating maintained, PT raised to $105 from $100)

Heading into the Dec-qtr print, we remain positive on AMD
and wouldn’t be surprised to see a beat and raise quarter with potential
f or the firm to generate revenues at or above the high-end. At this time
we note the following: 1) revenue has high potential for upside due to PC
demand, GPU demand and improving server trends, 2) we do not think
gross margins begin to beat until Q1/Q2, with multiple new products –
servers, GPUs and consoles, it is unlikely that yields are high on the initial
batch of chips (standard lower yields on initial production).

– Mitch Steves

Morgan Stanley (no rating, PT)

December, key products including graphics and consoles are constrained by tight supply,
with strong demand in all categories. All new graphics products – 6800, 6800 xt, and
6900 xt – are sold out at retail. While this is partly a function of foundry constraints, it is
indicative of strong demand from both gamers and to a smaller degree cryptocurrency
miners, and likely upside for AMD. New consoles, both Playstation and Xbox, are
similarly sold out, reportedly constrained by (among other things), AMD chips. And even
the newer Ryzen 5000 desktops are also in shortage, though this is more expected in
the early stages.

– Joseph Moore

AMD shares were rising 2.1% to $94.75 in trading Monday. 

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