AMD Q4 Earnings Preview: Key Metrics and Analyst Predictions
Revenue Growth
Analysts anticipate a robust 22.3% year-over-year growth in AMD's revenue, reaching $7.54 billion for Q4. This represents a significant improvement from the previous quarter's 10.2% increase.
Adjusted Earnings
Adjusting for factors, analysts project AMD's earnings per share to be $1.09.
Analyst Sentiment
Recent analyst estimates have remained largely unchanged, indicating a stable outlook for AMD heading into earnings. Historically, the company has missed revenue expectations twice in the past two years.
Peer Performance
Semiconductor peers such as Qorvo and Allegro MicroSystems have reported mixed Q4 results. Qorvo exceeded analysts' revenue predictions by 1.4% despite a 14.7% yearly decline, while Allegro MicroSystems surpassed estimates by 1.4% amidst a 30.2% revenue drop.
Market Context
The semiconductor industry has seen moderate underperformance in the past month, with an average 4.7% decline in share prices. AMD has underperformed the broader sector, losing 12.6% over the same period.
Analyst Price Target
Analysts have set an average price target of $169.82 for AMD, significantly above its current share price of $113.30.
Additional Insights
* Stocks experienced a positive 2024, buoyed by a successful Fed battle against inflation and the election of Donald Trump.
* Enterprise software companies leveraging generative AI are emerging as potential growth leaders.