AMD Need To Show Positive And Strong MI300 Accelerator Order Numbers

During the last reported quarter, AMD has met the revenue expectation with revenue coming in at $5.47 billion, up 2.2% year on year. It was a mixed quarter for the company, with a decent beat of analysts' EPS estimates but an increase in its inventory levels.

For this reporting quarter, AMD revenue is expected to grow 6.8% year on year to $5.72 billion, a reversal from the 18.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.68 per share.

What I think investors would be focusing is the disclosure that AMD’s management would be making during the earnings call, this time I believe it would be AMD’s full-year revenue forecast for its MI300 artificial-intelligence accelerator.

“If AMD is unable to raise the guide, we see further downside risk for shares,

Over the past 2 weeks, AMD stock price had dropped more than 20%, which has make AMD de-risked to a greater degree. Other that their guidance on their revenue forecast on the MI300 artificial-intelligence accelerator.

The return that AMD is giving for its stock price currently is in the negative, so the focus on the commentary on potential MI300 order cuts by Microsoft Corp might be something that AMD would need to give a clear direction.

Based on 36 Wall Street analysts offering 12 month price targets for Advanced Micro Devices in the last 3 months. The average price target is $195.03 with a high forecast of $250.00 and a low forecast of $140.00. The average price target represents a 38.41% change from the last price of $140.91.

At time of this writing, AMD is gaining positively, but with the speculation that their order of MI accelerator might suffer from cancellation, I think it would be better to look out for the price action in today (29 Jul) and trading tomorrow before its earnings.

By looking at how AMD have traded before its earnings, on the MACD side, downside is expected, while KDJ seems to show some potential upside forming for a BUY signal.

With AMD up by more than 1% at time of this writing, we might be able to see AMD continue this upside into the trading tomorrow (30 July) as well before its earnings.

While semiconductor stocks are suffering a downside recently, there are still some good stocks which could be looked into. One of them is AMD, their MI accelerator is something to look forward to, but speculation of order cancellation by Microsoft might remain a concern for investors.

Appreciate if you could share your thoughts in the comment section whether you think AMD could beat estimates and provide a positive guidance on its MI300 accelerator sales in 2024?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.