Advanced Micro Devices, Inc. (NASDAQ AMD) was
confirmed to report earnings Tuesday, August 1, 2023 after the market closes,
and was expected to beat estimates.
profit both exceeded analysts’ projections last quarter, and AMD’s accelerators
— a type of processor that speeds up the development of AI software — are
drawing more interest from customers. That’s spurred optimism that the company
can gain ground on Nvidia and capitalize on the rapid spread of artificial
intelligence across industries.
for AI accelerators in data centers could top $150 billion by 2027, Chief
Executive Officer Lisa Su said on a conference call with analysts. Customer “engagements”
with AMD’s AI products increased more than seven times last quarter as clients
prepared to bolster their infrastructure, she said.
are still in the very early days of the new era of AI, it is clear that AI
represents a multibillion-dollar growth opportunity for AMD,” she said.
outlook sent the shares up about 4% in late trading. Already, the stock had
climbed 82% this year through the close, making AMD the second-best-performing
member of the Philadelphia Stock Exchange Semiconductor Index. Its AI prospects
have fueled much of that rally.
Why the AMD Weekly
Options Trade was Originally Executed!
Advanced Micro Devices, Inc. (NASDAQ AMD) is confirmed
to report earnings today, Tuesday, August 1, 2023 after the market closes, and
is expected to beat estimates.
The consensus earnings estimate is $0.57 per share on revenue of $4.74
billion, a decline of 27.6% year-over-year, but the Whisper number is slightly
better at $0.59 per share. The company's guidance was for revenue of $5.00
billion to $5.60 billion.
Short interest has decreased by 1.0% since the company's last earnings
other semiconductor names, including Intel INTC and NXP Semiconductors NXPI,
have already unveiled their respective quarterly results, with both companies
posting better-than-expected results and seeing buying pressure post-earnings.
Micro Devices’ AMD quarter to be reported, analysts have primarily left their
top and bottom line expectations unchanged, with both earnings and revenue
forecasted to pull back from the year-ago quarter.
The AMD Weekly
Options Trade Explained.....
** OPTION TRADE: Buy AMD AUG 11 2023 120.000 CALLS - price at last close was $3.25 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the AMD Weekly Options (CALL) Trade on Tuesday, August 01, 2023, at 9:58, for $2.61.
Sold half the AMD weekly options contracts on Tuesday, August 01, 2023, at 3:14, for $4.90; a potential profit of 88%.
Holding the remaining AMD weekly options contracts
for further profit
due to an expected surge after reporting positive earnings.
Don’t miss out on further trades – become a
Further Catalysts for the AMD Weekly Options Trade…..
Micro Devices, the Q2'23 earnings report from Intel (INTC) provides great views
on the surging demand for AI chips and a rebound in PC demand crucial for AMD.
immediate signal from Intel beating Q2'23 estimates and guiding up for Q3 is
the rebound in PC demand. Most importantly, the inventory correction appears
over with OEMs no longer digesting chip inventory.
reported Q2 Client Computing revenue was down 12% YoY to $6.8 billion, but the
number was up $1.0 billion sequentially. The chip giant guided up Q3 revenue to
$13.4 billion, up $0.5 billion sequentially.
AMD reported that client revenues had fallen further to only $739 million. AMD
CPU revenues are now far over $1 billion per quarter below the peak levels
providing substantial upside potential when the PC market normalizes.
Semiconductors also posted better-than-expected top and bottom line results,
exceeding EPS expectations by 5% and delivering a 3% revenue beat. Similar to
INTC, the company’s revenue results were at the high end of previous guidance,
undoubtedly a positive.
market took the results well, with NXPI shares seeing bullish activity
AMD may see
some suppressed data center demand while heading into 2024. Ultimately, the
company should see upside from AI demand for the MI300 along with the Alveo AI
Going back a
few months, Morgan Stanley had estimated the AI potential for AMD was only $400
million with upside potential to $1.2 billion. The Intel forecasts would
suggest the AI potential for AMD is far higher next year when the MI300 is in
A rebound in
PC demand to more normalized levels places AMD back at the Q4'23 revenue target
of $6.5 billion alone. A PC rebound to normal digestion ($2 billion quarterly
run rate) along with higher data center or AI demand leads to vastly higher
revenues in 2024.
According to the issued ratings of 31 analysts in the last
year, the consensus rating for Advanced Micro Devices stock is Moderate Buy
based on the current 8 hold ratings, 22 buy ratings and 1 strong buy rating for
AMD. The average twelve-month price prediction for Advanced Micro Devices is
$130.03 with a high price target of $200.00 and a low price target of $80.00.
AMD has been a consistent earnings
performer as of late, exceeding both earnings and revenue expectations in nine
of its last ten releases. Just in its latest print, AMD delivered a 7% EPS beat
paired with a modest revenue surprise.
It’s worth noting that the market
has been impressed with the last two releases, with AMD shares seeing notable
bullish momentum post-earnings.
Advanced Micro Devices traded up
$0.95 during trading hours on Monday, reaching $113.91. The company’s stock had
a trading volume of 47,066,970 shares, compared to its average volume of
64,021,328. The firm has a market capitalization of $183.44 billion, a
price-to-earnings ratio of 491.61, and a P/E/G ratio of 8.59 and a beta of
1.86. Advanced Micro Devices, Inc. has a 1-year low of $54.57 and a 1-year high
of $132.83. The company has a debt-to-equity ratio of 0.05, a current ratio of
2.38 and a quick ratio of 1.74. The company’s 50-day moving average is $116.22
and its two-hundred day moving average is $97.17.