AMD Slips on Soft Q3 Outlook, Analysts Bullish on ‘Generational Share Gain Opportunity’
2022.08.03 13:21
AMD Slips on Soft Q3 Outlook, Analysts Bullish on ‘Generational Share Gain Opportunity’
By Senad Karaahmetovic
Shares of Advanced Micro Devices (NASDAQ:AMD) are down about 5% in premarket Wednesday after the chipmaker issued a tepid outlook for the current quarter.
AMD reported an adjusted EPS of $1.05, in line with the analyst expectations. Revenue soared 70% to $6.55 billion, a tad higher than the $6.53 billion consensus. AMD also reported an adjusted operating margin of 30%.
“Each of our segments grew significantly year-over-year, led by higher sales of our data center and embedded products. We see continued growth in the back half of the year highlighted by our next generation 5nm product shipments and supported by our diversified business model,” the company said in a press release.
For this quarter, AMD sees revenues between $6.5 billion and $6.9 billion with the midpoint of the guidance coming in below the consensus of $6.81 billion. AMD also said it expects to record an adjusted gross margin of 54%, again lower than the estimate of 54.2%.
On a full-year basis, AMD sees revenue of about $26 billion to $26.6 billion, higher than the estimate of $26.22 billion.
Despite the soft Q3 outlook, analysts remain very positive on AMD shares. A BofA analyst hiked the price target to $120 from $110 as the company has a “generational share gain opportunity.”
The analyst also urged investors to look past quarter noise.
“We continue to see AMD solidly positioned to expand its server market share towards 35% in the next 2-3 years vs
