AMD, a major processor manufacturer, is preparing to announce its third-quarter financial report after the U.S. stock market closes on the 4th, Taipei time. Due to AMD’s outstanding performance in the past two years and its recent strong stock price gains in CPU and GPU stocks, the financial report has attracted great attention from Wall Street and investors. The market generally expects AMD to continue to perform well, with both revenue and profit being satisfactory.
In the third quarter, market analysts have high hopes for AMD’s financial report. Combining various figures, AMD's revenue is expected to reach US$8.76 billion, an annual growth rate of 28.4%, which is significantly better than the 17.6% annual growth rate in the same period in 2024.
In terms of profit, the market estimates adjusted EPS of $1.17. Analysts covering AMD have generally reaffirmed estimates over the past 30 days. The continued confidence suggests analysts see solid growth in AMD's business. AMD's record of exceeding expectations often surprises the market. AMD has beaten Wall Street revenue estimates each time over the past two years, by an average of 1.9%.
The reason why the market is positive about AMD's third-quarter earnings expectations is partly due to its strong performance in the previous quarter. In the last quarter, AMD's revenue reached $7.69 billion, an annual growth rate of 31.7%. The figure beat analysts' revenue estimates by 3.4%.
So, with the second quarter being viewed as a strong quarter for the company, AMD not only performed well in terms of revenue, but also achieved significant improvements in inventory levels. More importantly, the company's financial forecast for the third quarter also successfully exceeded analysts' expectations. These positive operating and financial results lay a solid foundation for the upcoming third quarter financial results.
In the CPU and GPU fields, peers have successively announced their third-quarter results. AMD's most direct rival, Intel, managed to beat analysts' expectations with annual revenue growth of 2.8%. However, Intel's stock price remained unchanged following the earnings release.
In terms of the overall market, CPU and GPU stocks have recently shown a positive investment atmosphere. The average share price of related stocks has risen 3.1% over the past month. However, AMD shares showed a strong lead, with shares soaring 26.1% during the same period.
AMD enters this earnings season with strong stock price performance. Currently, market analysts have an average price target for AMD of $243.33. However, it is worth noting that AMD's current share price has reached $256.88, which means that the trading price has exceeded the average analyst price target. This reflects the market's optimism about AMD and its strong growth trend before the earnings report was released.