AMD will soon release its earnings report after the 30th market. The stock has almost doubled from its low in November last year. Can the trend continue in the future?
The fourth quarter is expected to benefit from a reversal in the server and PC market, as well as a bottoming rebound in the FPGA business. These two business reversals are a good thing, but currently AMD's stock price is mainly driven by its artificial intelligence business, and the MI300 is expected to make a very significant contribution to AMD's revenue and profits. The specific results for the fourth quarter are actually not important; they mainly depend on conference calls and AI accelerator sales.
In the last quarterly conference call, AMD expected sales of the artificial intelligence business to exceed $2 billion this year. The key question now is whether this figure can be achieved or even exceed expectations, followed by the profitability of the AI business. Tomorrow's conference call is quite important. If management is very confident in disclosing a lot about AI's sales volume, progress, and outlook, then it will be good for stock prices.
Wedbush raised its outlook for AMD's 24-year and 25-year performance, believing that the data center business will exceed expectations. The estimate for 2024 was raised from revenue: $26.6 billion/EPS: $3.99 billion to $27.9 billion/$431 million. Furthermore, the estimate for 2025 increased from $30 billion/$513 to $36.9 billion/$6.70 billion. This is how they explained it: In general, we've been discussing AMD as an alternative to NVIDIA...