Stock Forecast: AMD’s New Range of Ryzen Pro Processors Coupled with Outstanding Q1 Results Are Important Weapons Over Intel

  This article was written by Esther Hanon, a Financial Analyst at I Know First.

[Source: Wikimedia Commons, May 15th, 2018]

“The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth. PC, gaming and datacenter adoption of our new, high-performance products continues to accelerate. We are excited about our long-term roadmaps and focused on delivering sustained revenue growth and profitability.”

--Dr. Lisa Su, President and CEO of AMD

GPU-Equipped Ryzen Pros Give AMD What It Needs to Conquer the Corporate Desktop

Integrated graphics mean that AMD's chips can now go head to head with Intel's

Summary:

  • AMD published their Q1 2018 results on April 25th, 2018 crushing analyst estimates on earnings, revenue and guidance.
  • Revenues increased 40% year-over-year. The improving margin scenario provides additional upside for the stock as AMD finally starts producing sizable profits.
  • The stock surged 11%  in extended trading and had increased ever since the company published their Q1 2018 earnings.
  • The Q1 2018 earnings report of AMD also revealed that its Computing and Graphics segment has posted its 5th consecutive quarter of double digit Year-over-Year growth.
  • Thanks to stronger Ryzen processors sales, AMD posted an EPS of $0.11 (beats by $0.2), and revenue of $1.65 billion (+39.8% year over year) - beats by $80 million.
  • The reasons why AMD is beating estimates are the same. Cryptocurrency miners still bought many Radeon discrete GPUs. Ryzen APUs and processors are also finding more customers.
  • The forthcoming release of ASIC miners shouldn't be of concern. They do not threaten the lucrative tailwind of AMD from Ethereum miners.

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AMD Stock Predictions: An Algorithmic Analysis (AMD)

Advanced Micro Devices, Inc. (AMD) announced their first quarter earnings report on April 16th, and missed estimates for revenue and EPS. To be honest, the earnings report was rather depressing, as it also projected that revenues for the current quarter would fall another 3%, plus or minus 3%, sequentially. With revenue falling 26% this quarter, there does not look like there is much to be optimistic about when considering this stock. The poor earnings report, along with unfavorable market conditions, has caused the stock price to fall precipitously in the last year. However, some comments made by CEO Lisa Su offer some hope that the company will eventually be able to turn things around. amd stock predictions