AMD to Report Fiscal Third Quarter Earnings: What to Expect
As AMD (AMD) gears up to release its fiscal third-quarter earnings after the bell on Tuesday, all eyes are on the health of the artificial intelligence market. With AI continuing to be a driving force for tech giants like Nvidia (NVDA) and Microsoft (MSFT), investors are eagerly awaiting the results to see if their investments in the sector will pay off.
In the lead-up to its earnings report, AMD recently unveiled three upcoming chips, including its 5th Gen AMD EPYC CPU for servers, the Instinct MI325X AI chip, and the Ryzen AI Pro 300 for AI PCs tailored for enterprise users. These new offerings showcase AMD’s commitment to innovation and its push into the AI market.
Shares of AMD have soared 65% in the last 12 months, outperforming the S&P 500’s 36% growth and leaving Intel (INTC) in the dust with a 34% decrease in its stock price. On the other hand, Nvidia has seen a remarkable 246% surge over the same period, solidifying its dominance in the AI chip space.
While AMD may be Nvidia’s biggest rival in the AI chip sector, Nvidia still commands a significant market share, estimated between 75% and 90%. However, with AMD’s continuous innovation and product launches, the competition is heating up in this competitive market.
Analysts are expecting AMD to report adjusted earnings per share of $0.92 on revenue of $6.7 billion, showing strong growth compared to the same quarter last year. The data center business segment is anticipated to bring in $3.46 billion, with AI/GPU revenue alone expected to hit $1.39 billion.
On the other hand, AMD’s gaming segment is projected to see a decline, with estimates suggesting a revenue drop to $572 million, almost a $1 billion decrease from the previous year. Factors such as the pandemic-driven peak in graphics card sales and console purchases could impact the gaming segment’s performance.
As investors eagerly anticipate AMD’s earnings report, the outcomes are likely to provide insights into what to expect from Nvidia’s upcoming earnings announcement on Nov. 20. Stay tuned for AMD’s earnings results to gain valuable insights into the company’s performance and the state of the AI market.
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