AMD expected to release Q2 results with revenue growth, facing competition from NVIDIA, long-term prospects promising.

From Nasdaq: 2024-07-26 10:55:00

Advanced Micro Devices (AMD) is expected to release its second-quarter 2024 results on Jul 30, with revenues forecasted to be around $5.7 billion, a 6% year-over-year growth. Embedded and Gaming segments are expected to decline, while Data Center and Client segments to increase. AMD faces stiff competition from NVIDIA. Stock performance has been lackluster, but long-term prospects remain promising due to AI chip demand.

In the second quarter of 2024, AMD expects revenues to increase in the Data Center and Client segments but decline in the Embedded and Gaming segments. The company has been focusing on expanding its partner base and portfolio strength to drive growth. Data Center revenues are expected to see a massive 110.4% year-over-year jump, while Client segment revenues are expected to grow by 42.7%.

While AMD faces competition from NVIDIA, the company’s long-term prospects in the data center market look promising due to robust spending on AI chips. Revenues from AI semiconductors are projected to grow significantly, and AMD’s new offerings like the Instinct MI325X accelerator are helping expand its data center footprint. The company has also been active in strengthening its AI ecosystem through acquisitions.

Despite facing some challenges and competition, AMD’s strong position in the data center market and potential growth in the AI chip sector offer long-term growth prospects. Investors may need to evaluate the stock carefully given its current valuation and market performance. The stock has a Zacks Rank #3 (Hold), indicating that a more favorable entry point may be advisable.

As AMD prepares to announce its second-quarter 2024 results, investors will be watching closely to see how the company navigates its current challenges and capitalizes on its growth opportunities. With the AI chip sector expected to see significant growth, AMD’s strategic initiatives to strengthen its position in the market will be key to its long-term success.



Read more at Nasdaq: AMD Stock Before Q2 Earnings Report: To Buy or Not to Buy?