Market Overview

What Stifel Expects From Advanced Micro Devices' Q2

Share:
What Stifel Expects From Advanced Micro Devices' Q2

Advanced Micro Devices, Inc. (NASDAQ: AMD) is scheduled to report its fiscal second-quarter earnings in late July, and it shouldbe a positive print due to new product ramps, according to Stifel.

The Analyst

Stifel's Kevin Cassidy maintains a Buy on AMD's stock with a price target lifted from $17 to $21.

The Thesis

AMD is modeled to earn 13 cents per share in Q2 on revenue of $1.725 billion, Cassidy said in a research report. (See the analyst's track record here.) 

Encouragingly, data from IDC suggests traditional PC shipments rose 2.7 percent from a year ago to 62.3 million, which would mark the strongest year-over-year growth in over six years, Cassidy said. AMD likely also took advantage of additional strength in business volume, premium notebooks and gaming PCs, while at the same time graphic card prices moderated, he said. 

AMD said in its prior earnings report that blockchain applications accounted for around 10 percent of total revenue; this figure should fall in the second quarter, the analyst said. This view is supported by Taiwanese TUL Corp., a seller of AMD-based GPU products, which reported a 59-percent quarter-over-quarter revenue decline in Q1, Cassidy said. 

Stifel expects AMD to post below-seasonal gaming console-related revenue growth in Q3. Nevertheless, the company's Epyc server CPU revenue should increase and help boost gross margins in the out-quarter, Cassidy said. 

AMD is likely gaining market share in the PC and server CPU market, and this momentum should sustain throughout 2019, in Stifel's view. 

Price Action

AMD shares were trading higher by 3.14 percent at the time of publication Monday morning.

Related Links:

Bluefin Research Talks Trade War Impact On Nvidia, AMD

The Semiconductor Stocks That Fund Managers Love And Hate

Latest Ratings for AMD

DateFirmActionFromTo
Aug 2019Initiates Coverage OnNeutral
Aug 2019Initiates Coverage OnHold
Aug 2019Initiates Coverage OnHold

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Blockchain IDC Kevin Cassidy PCAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Earnings Preview: Healthcare Giant Johnson & Johnson Set To Report Tuesday Morning

Back To Banks: More Financial Results In Ahead of Powell Testimony Later This Week