AMD Earnings Coming After Tuesday’s Bell – What To Expect

Advanced Micro Devices stock price (NASDAQ: AMD) added 2.36% today, with the release of the company's third-quarter earnings report set for after market close tomorrow. AMD, a well-known semiconductor company, has been underperforming the market through 2024, with gains of 15.40% sitting below the S&P 500 by 8%. Zooming out gives a different picture however, with AMD's 66% growth almost double that of the benchmark index.

AMD boasts a versatile array of products including CPUs, GPUs, and adaptive processors. Their demand continues to ascend across the global market, partly due to the innovative technologies AMD offers. A recent highlight in the company's product line is the MI300X accelerator chip which has been successful in generating significant business and demonstrating AMD's competitive edge in the technology sector.

The consensus on earnings has AMD expected to come in with an EPS of $0.92, against revenue of $6.71 billion. The company has a recent history of mild beats on the top and bottom lines, so markets will likely be expecting more of the same.

The long-term outlook appears optimistic, with the high price target of $250 more than 50% above the most recent price action. The low mark of $146 remains in close proximity to the ~$160 range that AMD is currently changing hands, with the average of $188.77 more than 15% upside from here.

The expectations in the lead up to AMD's Q3 earnings report are not as high as they may have been in recent quarter's, but markets are not taking too kindly to those that miss. If recent history is anything to go by, a mild beat for AMD could be on the cards, but historical performance is not an indicator for future results, so the many warnings go. An interesting few days ahead that will hopefully shed a lot of light on the path that AMD may take from here.