Advanced Micro Devices Inc (AMD)

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Earnings Preview: Advanced Micro Devices Inc. (NASDAQ: AMD)
By: 24/7 Wall St. | August 1, 2022

• After markets close on Tuesday, these four companies will release their quarterly earnings reports.

AMD

In the past 12 months, shares of chipmaker Advanced Micro Devices Inc. (NASDAQ: AMD) have slipped by about 3.5%. Since reaching a 52-week high in late November, the stock plummeted by 54% to post a 52-week low one month ago. In July, the shares rose by more than 28%. AMD, unlike long-time rival Intel, is not expected to benefit from the $52 billion federal investment in semiconductor chipmaking that Congress has approved and President Biden is expected to sign. AMD, Nvidia, and Qualcomm have no fabs and no plans to build any. On Friday, AMD’s market cap of $153.1 billion topped Intel’s $149.1 billion.

There are 39 analysts covering AMD and 26 have rated the stock a Buy or Strong Buy while another 12 have a Hold rating on the shares. At a current price of around $94.50, the upside potential to a median price target of $120.00 is 27%. At the high price target of $200.00, the upside potential is 112%.

Consensus estimates call for second-quarter revenue of $6.53 billion, up 10.9% sequentially and up 69.6% year over year. Estimated adjusted EPS of $1.04 is down 8.3% sequentially and up 65% year over year. For the full 2022 fiscal year, analysts’ current consensus estimates call for EPS of $4.35, up 56%, on revenue of $26.21 billion, up 59.5%.

AMD stock trades at a multiple of 21.7 times expected 2022 EPS, 19.4 times estimated 2023 earnings of $4.87, and 16 times estimated 2024 earnings of $5.90 per share. The stock’s 52-week range is $71.60 to $164.46. AMD does not pay a dividend and total shareholder return over the past year is negative 8.2%.

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