What to Watch in AMD’s Q1 Report

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Advanced Micro Devices Inc. (NASDAQ: AMD) is scheduled to release its first-quarter financial results after the markets close on Tuesday. Thomson Reuters consensus estimates call for $0.05 in earnings per share (EPS) and $1.26 billion in revenue. The same period of last year reportedly had $0.11 in EPS and $1.65 billion in revenue.

Earlier this quarter, Alphabet confirmed that AMD would be the winner of its new Stadia cloud-based streaming video game service. It turns out that the Google team may be using AMD for more than just gaming, and that means broader market penetration at the expense of more expensively priced chipsets from rivals.

Recently RBC listed AMD as one of its three top semiconductor stocks that may be an incredible buy now.

In the fourth quarter, AMD earnings met expectations but revenues were short, and that sent shivers down the spines of investors. Yet, in the wake of this report, analysts seemed to hold their ground on AMD for the most part.

Excluding Tuesday’s move, AMD had outperformed the broad markets, with its stock up about 50% year to date. In just the past 52 weeks, the stock was up about 151%.

A few analysts weighed in AMD ahead of the release:

  • Barclays has an Equal Weight rating and a $26 price target.
  • Cowen has an Outperform rating with a $33 price target.
  • Merrill Lynch has a Buy rating with a $35 price target.
  • Nomura has a Buy rating with a $33 price target.

Shares of AMD were last seen down 2% at $27.11 on Tuesday, in a 52-week range of $10.77 to $34.14. The consensus price target is $25.75.

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