Advanced Micro Devices AMD is set to release its third-quarter 2024 results on Oct. 29.
AMD expects third-quarter 2024 revenues to be $6.7 billion (+/-$300 million). At the midpoint of the revenue range, this represents year-over-year growth of approximately 16% and sequential growth of approximately 15%.
The Zacks Consensus Estimate for revenues is pegged at $6.71 billion, suggesting growth of 15.72% year over year. The consensus estimate for third-quarter earnings is pegged at 91 cents per share, unchanged over the past 30 days.
AMD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while matching the same in one quarter, the average earnings surprise being 2.32%.
Advanced Micro Devices, Inc. Price and EPS Expectation
Let’s delve into AMD’s performance leading up to the earnings announcement.
Challenges in Embedded and Gaming Sectors Impact AMD’s Q3 Results
AMD’s third-quarter 2024 revenues are expected to have suffered from weakness in the Embedded and Gaming segments. On a year-over-year basis, the segment revenues are expected to have declined.
Positive Projections for AMD’s Data Center & Client Segments
AMD expects Data Center segment revenues to increase by a double-digit percentage, driven by the data center GPU ramp on a sequential basis. Client segment revenues are expected to increase.
Underperformance of AMD Shares Compared to Sector and Industry
AMD shares have gained 7.4% year to date (YTD), underperforming the Zacks Computer & Technology sector’s growth of 25.5% and the Zacks Computer – Integrated Systems industry’s 16.3%.
AMD’s Investment Prospects Aided by Acquisitions and Data Center Expansion
AMD’s long-term prospects are promising, buoyed by robust investment in AI chips, recent acquisitions, and expansion in the data center market. The company’s moves suggest a strategic push towards AI dominance.
Final Thoughts on AMD’s Q3 2024 Results
AMD’s performance in the third quarter of 2024 may have been impacted by challenges in specific segments. However, the company’s long-term vision and recent strategic moves indicate a potential for growth. Investors should carefully evaluate the risks and rewards associated with AMD’s stock.
Unveiling the Cream of the Crop: Stocks Poised for Success in the Upcoming Month
The Elite Selection
Experts have meticulously curated a list of 7 exceptional stocks, extracted from the pool of 220 Zacks Rank #1 Strong Buys. These chosen tickers are anticipated to experience rapid price surges, making them prime candidates for favorable market performance in the near future.
Proven Track Record
Since its inception in 1988, the entire selection has consistently outperformed the market, boasting an impressive average yearly gain of over 23.7%. This remarkable track record underscores the reliability and potential profitability associated with these carefully handpicked 7 stocks.
