AMD Q1 Earnings Preview: Analysts Bullish, But Warn Of Factors That 'Can Derail The Semiconductor Industry'

Leading semiconductor company Advanced Micro Devices AMD will report first-quarter financial results after market close Tuesday.

Here are the key earnings estimates and what analysts are saying ahead of the report.

Earnings Estimates: Analysts expect AMD to report first quarter revenue of $5.46 billion, according to data from Benzinga Pro.

The company reported revenue of $5.35 billion in last year's first quarter. AMD has beaten revenue estimates from analysts in five straight quarters.

Analysts expect AMD to report earnings of 61 cents per share in the first quarter, slightly ahead of the 60 cents per share reported in last year's first quarter. The company has beaten earnings per share estimates from analysts in four of the last five quarters, with one in-line quarter over the same time period.

AMD said during its fourth-quarter earnings report that it expects first quarter revenue to be $5.4 billion, plus or minus $300 million.

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What Analysts Are Saying: AMD is a top pick for 2024 by Rosenblatt analyst Hans Mosesmann.

The analyst, who has a Buy rating and $250 price target, said the company is set up well for the first quarter.

"AMD setup is geared towards an inline print and a bias towards the upside, as AI MI300 and EPYC experience gains in CPUs," Mosesmann said.

The analyst expects the company to report first quarter revenue of $5.4 billion.

"This growth helps offset the usual seasonal weakness in PCs, as well as the ongoing weakness in FPGAs and consoles."

Mosesmann expects AMD to report second quarter revenue of $5.40 billion, which is below a consensus estimate of $5.74 billion.

Risks for the company include market share declines for CPU or GPU, the highly competitive landscape and the cyclical nature of the semiconductor sector, Mosesmann said.

"Any global economic slowdown/macroeconomic uncertainty can derail the semiconductor industry as a whole and, in turn, place pressure on AMD's revenues."

Here are other analyst ratings on AMD and price targets ahead of the first quarter earnings report.

• Morgan Stanley: Overweight rating, lowers price target from $193 to $177
• Susquehanna: Positive rating, lowers price target from $200 to $185
• TD Cowen: Buy rating, raises price target from $185 to $200
• Wedbush: Outperform rating, $200 price target
• Evercore: Initiates with Outperform rating, $200 price target
• HSBC: Upgrades from Hold to Buy, $225 price target

AMD Price Action: AMD shares are up 1% to $159.62 on Monday versus a 52-week trading range of $81.02 to $227.30. AMD shares are up 83% over the last year.

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