[Earnings Preview] Maintaining Strong Data Center Business? GS is also bullish, and AMD is scheduled to announce 24Q2 financial results after closing on 31st (Wednesday) Japan time
● $Advanced Micro Devices (AMD.US)$ Is24Q2 financial results announced after closing on 7/31 (Wed) Japan timeI plan to do it.
●The market is the company'sSales increased 6.76% year over year to $5.721 billion、EPS was $0.18, up 823.5% from the same period last yearExpected.
● The growth of the company's data center business is steady. Since the launch of the MI300 in the 4th quarter of '23, cumulative sales have exceeded 1 billion dollars.
● AMD plans to announce the MI325 equipped with 288 gigabytes of HBM3E memory later this year.
●The market is the company'sSales increased 6.76% year over year to $5.721 billion、EPS was $0.18, up 823.5% from the same period last yearExpected.
● The growth of the company's data center business is steady. Since the launch of the MI300 in the 4th quarter of '23, cumulative sales have exceeded 1 billion dollars.
● AMD plans to announce the MI325 equipped with 288 gigabytes of HBM3E memory later this year.
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$NVIDIA (NVDA.US)$It is the biggest rival $Advanced Micro Devices (AMD.US)$We plan to announce 24Q2 financial results after closing on 7/31 (Wed) Japan time. Although the company's stock price has fallen 1.89% year to date, many of Wall Street's major financial institutions and research institutes are bullish.Average target share price is $194.52It has become.
Strong data center growth, poor gaming and embedded
FY24 1st quarter, $Advanced Micro Devices (AMD.US)$Sales increased 2.2%, and adjusted operating profit increased 3.2%. Factors include strong growth in the data center business, recovery in the PC market, sluggish growth in the game business, and inventory adjustments in the embedded business.
FY24 1st quarter, $Advanced Micro Devices (AMD.US)$Sales increased 2.2%, and adjusted operating profit increased 3.2%. Factors include strong growth in the data center business, recovery in the PC market, sluggish growth in the game business, and inventory adjustments in the embedded business.
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AMD's data center business sales for the first quarter of fiscal year 24 were 2.3 billion dollars, up 80% from the same period last year. Currently, data centers account for over 42% of total sales. Since the release of the MI300, which is AMD's latest AI chip, in the fourth quarter of fiscal year 23, cumulative sales have exceeded 1 billion dollars.
Expansion of MI300 production, AMD and $Microsoft (MSFT.US)$ 、 $Oracle (ORCL.US)$ 、 $Meta Platforms (META.US)$There is a high possibility that the company's data center business will continue to grow in the future due to the expansion of relationships with major cloud hyperscalers, etc., and the expansion of the AI product lineup using the MI325 equipped with 288GB HBM3E memory scheduled to be announced later this year.
Furthermore, the company's next-generation Turin EPYC processors are scheduled to be launched later this year. According to reports by Tom's Hardware, this 3nm chip means the advent of AMD's Zen 5 architecture for data center chips, and there is a possibility that it will be 5.4 times faster than competing Intel's current generation Xeon chips in major AI workloads.
Acquisition of Silo AI
AMD announced on 7/10 that it will acquire Silo AI for 0.6 billion 65 million dollars. There is a possibility that Silo AI will provide an open source AI software function that performs AI training and inference on AMD's compute platform. The combination of software and hardware has the potential to strengthen AMD's leading position in the AI field.
AMD announced on 7/10 that it will acquire Silo AI for 0.6 billion 65 million dollars. There is a possibility that Silo AI will provide an open source AI software function that performs AI training and inference on AMD's compute platform. The combination of software and hardware has the potential to strengthen AMD's leading position in the AI field.
Silo AI has extensive experience in introducing AI, and has successfully completed over 200 projects. The company has successfully applied AI technology in various industries such as pharmaceuticals and traditional manufacturing. Software for AI training and inference will help AMD attract more enterprise customers by providing both software architectures and GPU solutions.
risks
$Advanced Micro Devices (AMD.US)$ One of the biggest risks for us is a strong rival $NVIDIA (NVDA.US)$It is. The company's growth rate in the data center business lags behind NVIDIA. Furthermore, NVIDIA has the advantage of winning first and foremost in the software layer, and has established more partnerships with both cloud and enterprise customers. Furthermore, NVIDIA is prepared to share AI growth with an ecosystem including servers, memory, and AI software vendors. As a result of these, the differences between the two companies in the AI field will widen further, and there is a high possibility that AMD's long-term growth potential will eventually be impaired.
$Advanced Micro Devices (AMD.US)$ One of the biggest risks for us is a strong rival $NVIDIA (NVDA.US)$It is. The company's growth rate in the data center business lags behind NVIDIA. Furthermore, NVIDIA has the advantage of winning first and foremost in the software layer, and has established more partnerships with both cloud and enterprise customers. Furthermore, NVIDIA is prepared to share AI growth with an ecosystem including servers, memory, and AI software vendors. As a result of these, the differences between the two companies in the AI field will widen further, and there is a high possibility that AMD's long-term growth potential will eventually be impaired.
Also, there are analysts who think that the company's stock is currently overvalued, especially against the backdrop of recent heightened market volatility. The analyst sees that the company's stock price is currently overvalued, considering that AMD's AI chips are lagging behind rival NVIDIA, that various major cloud computing companies are investing in their own custom AI chips, and that the company's insiders have sold the company's shares over the past 12 months.
Although the stock price has skyrocketed 60 times, it has now been drastically left behind by NVIDIA!How should we look at AMD's earnings report?
— MooMoo News Zeber
Source: moomoo, Bloomberg, Seekingalpha
This article uses automatic translation for some of its parts
Source: moomoo, Bloomberg, Seekingalpha
This article uses automatic translation for some of its parts
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