Advanced Micro Devices Inc AMD is scheduled to report its fourth-quarter results Tuesday after the close. With its ongoing product momentum, the company has been consistently taking market share away from rival Intel Corporation INTC.
The AMD Analyst: Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating and $180 price target for AMD shares.
The AMD Thesis: AMD's fourth-quarter earnings and revenues are likely to exceed the consensus as well as Rosenblatt's estimates, Mosesmann said in a note.
The consensus estimates model earnings of 76 cents per share on revenues of $4.52 billion.
Quarterly revenues will likely be driven by across-the-board strength in key product areas, with data center and gaming expected to show marked strength, the analyst said. Although, he also noted that continued supply constraints could serve as an offset.
Related Link: Ahead Of Tech Earnings, Analyst Names Nvidia And These 4 Semiconductor Stocks As 2022 Top Picks
AMD will likely guide the March quarter above the consensus estimates that model a low-single-digit quarter-over-quarter decline in revenues and EPS of 69 cents, the analyst said. Data center GPU compute growth, new product cycles, continued share gains and higher ASPs could help the company outperform relative to expectations in the quarter, he added.
On the earnings call, investors can look forward to hearing from the company on the current product roadmap, supply constraints, PC and data center demand and the potential closing date of the Xilinx, Inc. XLNX acquisition, the analyst said.
"With Intel continuing to face headwinds in terms of margin pressure, we see AMD's superior CPU portfolio (particularly in data center where TCO is most important) leading to accelerated share gains," Mosesmann said in the note.
AMD Price Action: AMD shares were trading up 1.03% to $115.42 on Tuesday morning. The stock has shed about 20.6% in the year-to-date tech sell-off, after ending 2021 with a gain of about 57%. In the fourth quarter ending Dec. 31, 2021, the stock rallied about 40%.
Related Link: Why AMD Is Looking 'Solid' Into The Year-End
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