Advanced Micro Devices Stock FY2023 Q4 Third-party Analysts' Forecast & Preview

Advanced Micro Devices (AMD) stock had a strong performance in 2023, seemingly driven by the company's push into artificial intelligence chips. On December 6, AMD launched a new AI-focused chip called Instinct MI300X to compete with Nvidia in the AI computing market. AMD said the new chips have leading capacity and bandwidth for AI model training and inferencing. The company is targeting the over $400 billion AI chip market expected by 2027.

On December 7, the day after the AI chip announcement, AMD shares surged 10%. Analysts were positive on the new product launch, with Barclays AMD could raise its $2 billion 2023 AI chip sales target as the year progresses.

For the week of December 2 to December 8, AMD stock rose as one of the top performing stocks. The gains came as the overall market consolidated near 52-week highs. AMD continued its momentum, breaking out to new highs amid improved market breadth.

AMD's AI chip news and stock breakout positioned it as a potential leader in the red-hot artificial intelligence computing space. With strong revenue growth expected, AMD stock had a standout performance in 2023.

Part 2：Advanced Micro Devices FY2023 Q3 Earnings Report Recap

1. Advanced Micro Devices Key Indicators and Historical Earnings Report

• - Advanced Micro Devices FY2023 Q3 EPS was $0.18, YOY +350.00%
• - Advanced Micro Devices PE Ratio today is 214.68 
• - Advanced Micro Devices FY2023 Q3 Revenue was $5.8B, YOY +4.22% 
• - Advanced Micro Devices FY2023 Q3 FCF was $297M, YOY -64.73%
• - Advanced Micro Devices FY2023 Q3 Current Ratio was 2.19, YOY +1.53% 
• - Advanced Micro Devices FY2023 Q3 ROA was 0.44%, YOY +351.84%
• - Advanced Micro Devices FY2023 Q3 ROE was 0.54%, YOY +351.45%
• - Advanced Micro Devices FY2023 Q3 Gross Margin was 47.36%, YOY +11.97% 
• - Advanced Micro Devices FY2023 Q3 Net Margin was 5.16%, YOY +334.67%

For more information, such as definitions and explanations of the above technical terms, please view:

Interpretation of Key Indicators >>

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2. Advanced Micro Devices FY2023 Q3 Financial Statement Analysis

Revenue and Growth

● AMD reported third quarter 2023 revenue of $5.8 billion, up 4% year-over-year and 8% sequentially. For the first nine months of 2023, revenue was $16.5 billion.

● Revenue growth was driven by AMD's Computing and Graphics segment, offset by a decline in the Enterprise, Embedded and Semi-Custom segment.

● The Computing and Graphics segment, which includes Ryzen and Radeon products, grew 42% year-over-year to $1.5 billion for the quarter based on higher mobile processor sales. This segment grew 46% sequentially.

● The Enterprise, Embedded and Semi-Custom segment, which includes EPYC server CPUs and semi-custom chips, declined 5% year-over-year to $3.2 billion. This segment was down 15% sequentially due to inventory correction in several end markets.

Profitability

● Gross margin was 47% for the third quarter, up from 42% a year ago. Non-GAAP gross margin was 51%.

● Operating income was $224 million compared to an operating loss of $64 million a year ago. Non-GAAP operating income was $1.3 billion.

● Net income was $299 million or $0.18 per share, up from $66 million or $0.04 per share a year ago. Non-GAAP net income was $1.1 billion or $0.70 per share.

AMD generated $1.4 billion in adjusted EBITDA during the quarter.

Cash Flow and Balance Sheet

● AMD generated $421 million in cash from operations and $297 million in free cash flow during the third quarter.

● For the first nine months of 2023, AMD generated $1.3 billion in cash from operations and $879 million in free cash flow.

● Cash, cash equivalents and short-term investments totaled $5.8 billion at the end of the third quarter.

● Long-term debt was $2.5 billion.

● Total assets were $67.6 billion and stockholders' equity was $55 billion.

Overall, AMD delivered solid revenue and earnings growth driven by its Computing and Graphics segment. Profitability improved across the board. AMD continued to maintain a strong balance sheet.

3. Advanced Micro Devices FY2023 Q3 Segment Data

Data Center

● The Data Center segment includes server CPUs, GPUs, DPUs, FPGAs and Adaptive SoCs.

● Revenue was $1.6 billion in Q3 2023, flat year-over-year but up 21% sequentially.

● Growth in 4th Gen EPYC CPU sales was offset by a decline in adaptive SoC products.

● Operating income for the segment was $306 million in Q3.

Client 

● The Client segment includes CPUs, APUs and chipsets for desktop and notebook PCs.

● Revenue was $1.5 billion in Q3, up 42% year-over-year and 46% sequentially driven by Ryzen mobile processor sales.

● Operating income was $140 million compared to an operating loss of $26 million a year ago.

Gaming 

● The Gaming segment includes discrete GPUs and semi-custom SoC products.

● Revenue was $1.5 billion in Q3, down 8% year-over-year due to lower semi-custom revenue, partially offset by higher Radeon GPU sales.

● Revenue decreased 5% sequentially due to lower semi-custom sales.

● Operating income was $208 million compared to $142 million a year ago.

Embedded

● The Embedded segment includes embedded CPUs, GPUs, APUs and Adaptive SoCs.

● Revenue was $1.2 billion in Q3, down 5% year-over-year and 15% sequentially due to lower sales in communications and other markets.

● Operating income was $612 million compared to $635 million a year ago.

Part 3：Advanced Micro Devices FY2023 Q4 Earnings Report Forecast & Preview

1. Advanced Micro Devices FY2023 Q4 Forecast By Third Party Analyst Rating, January 26th

Advanced Micro Devices earnings date is coming soon! Following an extensive evaluation of Tesla's financial data, revenue, and stock trends over the last few quarters by more than 40 third-party financial analysts, AMD Stock has been given a Strong Buy rating. Analysts forecast an average stock price of $157.230 (Average) for the next 12 months.

- Third Party Analyst rating: Strong Buy

- Advanced Micro Devices Price Target: $157.230

- Forecast of FY2023 Q4 EPS: $0.260

- Forecast of FY2023 Q4 Revenue: $6.1B

- Forecast of FY2023 Q4 EBIT: $1.4B

For more information on what the analyst ratings may mean, visit https://pro.benzinga.com/blog/what-do-stock-analyst-ratings-mean/ (Benzinga is not affiliated with Moomoo Technologies Inc., Moomoo Financial Inc., or its affiliates.)

2. Advanced Micro Devices Forecast By Technical Analysis, January 26th, 2024

For more information, such as definitions and explanations of the above technical terms, please view: 

Interpretation of technical indicators >>

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