Advanced Micro Devices (NASDAQ: AMD)

Advanced Micro Devices (NASDAQ: AMD) is slated to release its third-quarter Fiscal 2022 results on November 1 before the market opens. Wall Street expects AMD to post adjusted earnings of $0.70 per share. This is slightly lower than the prior-year earnings of $0.73 per share. Meanwhile, revenue is pegged at $5.65 billion, representing a year-over-year jump of about 31%.

Notably, AMD has a strong track record of reporting an earnings beat. It has beaten estimates in all the preceding eight reported quarters.

On October 6, AMD announced its preliminary Q3 results and cut its revenue outlook. The company now expects to report Q3 revenues of $5.6 billion compared to the previously guided outlook of $6.5 billion – $6.9 billion.

The outlook reduction was attributable to lower-than-expected Client segment revenue due to reduced processor shipments on the back of sluggish PC market demand and major inventory corrective measures across the PC supply chain.

Ahead of the Q3 result, Stifel analyst Ruben Roy reiterated a Buy rating and a price target of $100 on AMD.

Following Intel’s (NASDAQ: INTC) Q3 earnings, Roy is bullish on AMD’s results and projects AMD’s “Genoa” cycle to drive continued share momentum in 2023.

Based on INTC’s PC TAM commentary, Roy believes that the “PC market is potentially nearing a bottom.”

He further added, “INTC noted that its data center segment continues to grow slower than market as AMD continues to gain share. INTC noted that this dynamic is likely to play out for a few more quarters.”

Is AMD Stock a Buy or Sell?

Analysts are cautiously optimistic about AMD stock and have a Moderate Buy consensus rating, which is based on 19 Buys, nine Holds, and one Sell. AMD’s average price forecast of $95.34 implies 58.35% upside potential.

Final Thoughts

AMD stock is down almost 60% year-to-date. A positive earnings surprise tomorrow may result in a rebound in the stock’s momentum.