find an earnings preview snippet below what I am really concerned about is :
• A slowdown in the PC market and overall global demand
• The Tech selloff and will it continue due to the overall sector despite an earnings beat from $AMD?
Over the last 3 months, EPS estimates have seen 11 upward revisions and 0 downward. Revenue estimates have seen 10 upward revisions and 0 downward.
While rivals struggled with a tight chip supply market, AMD used that dynamic to grow its margins.
Financial Outlook (Non-GAAP) provided by the company in its Q4 earnings call:
AMD's stronger-than-expected showing was driven by the robust demand for its processors, which are used in a variety of facilities and devices ranging from data centers to computers to gaming consoles.
Given AMD's move to the N5 TSMC node, when the next-generation EPYC server CPU Genoa hits the market in Q4, Raymond James' Chris Caso believes the technology gap between the two companies will widen further.
AMD is also investing in long-term growth with some acquisitions – Pensando (April) and Xilinx (February); the companies are not directed at enhancing AMD's retail offerings; they are aimed at large corporations as AMD looks to push into higher-margin markets.
In last week of April, Raymond James upgraded AMD to Strong Buy from outperform, citing several reasons, including an attractive valuation; it also adds several secular growth areas, a more muted cyclical exposure than other semiconductor stocks.
Peer company Intel forecasted Q2 guidance which suggested a slowdown in the PC market.
YTD, the stock lost 42% amid the tech sell-off driven by rising interest rates and thus presents a buying opportunity investors as investors are attracted by expected growth in Q1 earnings.
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