Monday, March 20, 2023
HomeMarketAMD Reports Earnings Today. What to Expect.

AMD Reports Earnings Today. What to Expect.

AMD stock has fallen by 30% over the last 12 months.

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After Intel’s disappointing earnings report last week, Wall Street expects weak PC demand to also affect the chip maker’s main rival Advanced Micro Devices.

But the big question for investors is whether
‘s strength in server processors and cloud computing can make up for some of that softness when it reports after the close on Tuesday.

The Wall Street consensus estimate is that
(ticker: AMD) will report revenue of $5.51 billion with adjusted earnings per share of 67 cents for the December quarter. The estimate for the current quarter’s revenue is $5.5 billion and earnings per share of 68 cents.

AMD stock has fallen by 30% over the last 12 months.

AMD and Intel use the x86 chip architecture in making the processors that act as the main computing brains for PCs and servers. Last Thursday, Intel (INTC) missed earnings expectations for the fourth quarter and provided a revenue forecast for its March quarter far below the consensus.

Industry demand for computers has been softening. According to research firm IDC, worldwide shipments of PCs fell 28% in the December quarter from a year earlier after a 15% year-over-year decline in the September quarter. IDC cited a continued unwinding of the pandemic-era boom.

On Monday, Susquehanna analyst Christopher Rolland reaffirmed his Positive rating for AMD stock, citing AMD’s better-performing server chips. He raised his price target to $88 from $80.

Industry analyst comparisons show a large price-to-performance gap between Intel’s current Sapphire Rapids server processor and AMD’s server chip Genoa. It could mean AMD will continue to gain share in the server segment for the next several quarters.

“While Intel cited macro weakness across all DC [data center] segments, we believe competitive pressures are also a factor,” he wrote. “While AMD is not immune to an enterprise slowdown, the performance gap of [AMD] Genoa over [Intel] Sapphire Rapids should allow AMD to overcome a softer backdrop.”

Write to Tae Kim at


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