Earnings season is choosing up steam and on Tuesday, after the bell, Advanced Micro Devices (AMD) will announce its quarterly outcomes.
Going by latest constructive pre-announcements from friends, Intel and Nvidia – each anticipate to submit increased income than prior steering – Deutsche Bank’s Ross Seymore anticipates “another characteristic beat/raise.”
“Overall,” the 5-star analyst stated, “We expect another solid quarter from AMD, as the company is firing on all cylinders (server CPUs, game consoles, notebook/desktop CPUs, discrete GPUs), with supply-limited potential for incremental upside to the company’s 1Q guidance and its CY21 rev growth outlook (DBe +40% y/y for CY21 vs. AMD guide of +37%).”
Over the previous 12 months, AMD has benefited from the WFH development. Any worries that with reopenings, this tailwind will subside are evidently misplaced.
IDC/Gartner information factors to 55% and 32% year-over-year development in PCs, respectively, and Seymore thinks the corporate’s C&G (computing and graphics) section may spring a constructive shock, “albeit somewhat limited by continued foundry supply constraints.”
In EESC (enterprise, embedded and semi-custom), the analyst forecasts a “somewhat smoother game console cycle than prior cycles,” whereas for the Rome server enterprise, Seymore expects “continued growth” and can hope to glean some perception on “customer engagement” with the brand new EPYC Milan merchandise.
Overall, Seymore requires Q1 income of $3.25 billion, amounting to an 82% year-over-year uptick and barely above the consensus estimate of $3.21 billion. EPS is anticipated to hit $0.45, a cent above the Street’s name.
Looking forward to the second quarter, Seymore expects AMD will information for income to extend by 72% year-over-year to $3.33 billion, roughly 2% increased than Wall Street’s $3.28 billion estimate. Once once more, the 2Q21 EPS estimate of $0.47, is a cent increased than the Street’s forecast.
Interestingly, nonetheless, regardless of the glowing evaluate and elevated expectations, Seymore has a Hold score for AMD shares. The analyst cites a valuation which “sufficiently reflects the company’s growth potential and any upside to EPS,” as the explanation for staying on the sidelines. Seymore’s $90 value goal implies one-year upside of 9%. (To watch Seymore’s observe report, click here)
Looking on the consensus breakdown, most analysts disagree. 13 Buy critiques are joined by 5 Holds and 1 Sell, all leading to a Moderate Buy consensus score. The common value goal stands at $103.59, suggesting shares will add 25% over the approaching months. (See AMD stock analysis on TipRanks)
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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is essential to do your personal evaluation earlier than making any funding.