From Nasdaq:

Shares of Advanced Micro Devices, Inc. (AMD) have surged as analysts tout the company as a strong AI player, set to rival Nvidia Corp. AMD’s fourth-quarter earnings report is scheduled to be released Tuesday after the market closes. The stock has gained 20.6% in January, fueled by high expectations and estimates from traders.

Key Q4 expectations include a consensus revenue of $6.12 billion and non-GAAP EPS of 77 cents. Analysts are optimistic, predicting higher results for the fourth quarter, driven by strong server demand. Meanwhile, Intel Corp.’s shares suffered a 12% drop after reporting lower-than-expected revenue for the fourth quarter.

AMD’s major business segments are the Client business, Data Center business, Gaming, and the Embedded segment, which collectively produced over 20% of the revenue in Q3. KeyBanc expects inflection in Genoa processor demand and positive traction for MI300X AI accelerator chips.

Global PC shipments declined by 2.7% year-over-year in Q4, according to IDC. Susquehanna analyst Christopher Rolland expressed concerns about potential FPGA inventory levels that could impact the Embedded segment.

For the 2024 first quarter, analysts predict non-GAAP earnings per share of 67 cents on revenue of $5.73 billion. Barclays expects the company to exit 2024 with an AI revenue run-rate of $4 billion, which may increase to over $7 billion in 2025. The company is aiming for further revenue growth.

Analysts anticipate AMD’s earnings call to provide updates on customer engagements for MI300X, Genoa ramp-up, and the company’s status in the PC market compared to Intel. In premarket trading on Tuesday, AMD shares were down 0.90% at $176.23. Despite high expectations, analysts have an average price target for AMD shares at $163.87, an 8% downside from current levels.

With the release of their Earnings report, advanced Micro Devices is likely to gain against their rivai, Intel Corp, with Azure helping the business’ cloud division grow by nearly 50%, Microsoft achieved nearly 50% growth in its cloud division



Read more: AMD Analysts Spotlight Crucial ‘Swing Factor’ Ahead Of Q4 Earnings Amid Tough Chip Industry Conditions