AMD Fans, Mark Your Calendars for May 3


AMD stock - AMD Fans, Mark Your Calendars for May 3

Source: Joseph GTK /

Advanced Micro Devices (NASDAQ:AMD), one of the top tech companies in the market has consistently grown and expanded its market share. AMD stock has generated solid returns for investors in the past and is showing massive growth potential. The stock is trading at $93 today, down from $102 last week. AMD stock has dipped 9% over the past week, but the announcement of its quarterly results could take the stock higher. 

The company has announced that it will report first-quarter results on May 3, 2022. The semiconductor industry is a high growth sector, but it has been under pressure due to the slowdown of the economy. The upcoming interest rate hikes by the Federal Reserve has restricted consumers from making purchase decisions. 

Investors are eyeing solid numbers in the quarterly results. Analysts expect the company to report revenue of $5.52 billion. AMD reported earnings per share of $0.81 in the last quarter and revenue of $4.8 billion. AMD projects revenue of $5 billion-plus or minus $100 million for this quarter and revenue of $21.5 billion for the year. 

Analysts aren’t satisfied with the company’s performance, spurring some downgrades. Erste Group analyst Hans Engel believes the slowdown in revenue growth will also stunt AMD’s earnings growth, keeping AMD at a hold. Further, William Stein, a Truist analyst also has a hold rating with a target price of $111, stating a decline in consumer demand for electronic products like semiconductors. My InvestorPlace colleague Chris Tyler believes that now is a good time to sell AMD stock

Besides acquiring Xilinx, the company recently announced that it had agreed to acquire Pensando, an enterprise services start-up company for $1.9 billion.

Quarterly earnings will be interesting. If AMD manages to hit analyst expectations, it will likely help slow the downturn in AMD stock.

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC