Strong PC sales and AI demand expected to drive Q2 beat for AMD stock

From Nasdaq: 2024-07-24 22:03:39

Advanced Micro Devices (AMD) is set to report Q2 FY’24 results with expectations of $5.73 billion in revenue and earnings of about $0.68 per share. Strong CPU sales are anticipated due to rising PC sales, while GPU sales are expected to increase significantly driven by AI demand. Gross margins are guided at 53% for the year.

AMD stock has seen a 65% increase since January 2021, but returns have been inconsistent with a jump of 128% in 2023. In contrast, the Trefis High Quality Portfolio has outperformed the S&P 500 annually. AMD’s valuation at 44x consensus 2024 earnings may be justified by the PC market recovery and AI demand surge. The stock is valued at $163 per share.

Returns for AMD stock in July 2024 show a decline of 7%, with a year-to-date increase of 3% and a total return of 1237% from 2017-24. Comparatively, the S&P 500 has seen a 1% monthly return, 15% year-to-date, and a total return of 146%. Trefis Reinforced Value Portfolio has provided stable returns. Investors can explore Market-Beating Portfolios and Price Estimates for further analysis.



Read more at Nasdaq: Will AI Surge And Strong PC Sales Drive A Q2 Beat For AMD Stock?