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    • What you need to know before AMD profits
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    What you need to know before AMD profits

    Umito Posted on

    Key takeaways

    • Advanced Micro Devices will report its third quarter results after the closing bell on Tuesday.
    • Analysts expect AMD’s net profit to more than double from a year ago on strong data center revenue.
    • Investors will likely be listening for commentary on expectations for artificial intelligence after the company’s Advancing AI event earlier this month.

    Advanced micro-devices (AMD) will report its third-quarter financial results after the closing bell on Tuesday, with analysts calling for significant profit growth.

    Analysts expect the chipmaker to report revenue of $6.71 billion, up nearly 16% year over year, according to Visible Alpha. Net income is expected to be $815.76 million, or 50 cents per share, more than double the $299 million, or 18 cents per share, posted by AMD a year earlier.

    Analyst estimates for the third quarter of 2024 Q2 2024 Q3 2023
    Income $6.71 billion $5.84 billion $5.8 billion
    Earnings per share 50 cents 16 cents 18 cents
    Net income $815.76 million $265 million $299 million

    Key Metric: Data Center Revenue

    In July, AMD announced that its second-quarter data center revenue more than doubled year-over-year to single digits. save $2.8 billion demand for company investments artificial intelligence (AI) the chips jumped.

    Analysts expect data center revenue to hit a new high of $3.52 billion for the third quarter. CEO Lisa Su said in July that AMD expects to “generate strong revenue growth in the second half, driven by demand for Instinct, EPYC and Ryzen processors.”

    Business Spotlight: AI Sales Outlook

    At the company AI Advancement Event Earlier this month, AMD launched its next generation of AI chips, but did not raise its AI sales forecast or announce major new customers as many investors had hoped. Jefferies analysts suggested investors could be I monitor these updates coming with AMD results on Tuesday.

    More than 80%, or 13 of 16 analysts covering AMD tracked by Visible Alpha, have a “buy” or equivalent rating on the stock, with an average price target of $192.13, implying an upside of ~23 % from Friday’s closing price of $156.23. AMD shares have gained 6% so far in 2024.

    Umito
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