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Advanced Micro Devices, Inc. (NASDAQ:AMD) Has Some Help Today

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are getting whacked today, along with most everything even mildly connected with the semiconductor space. As we previously posted, the catalyst here is gloomy Q4 management commentary and forecasts from MKSI, TXN, and STM. They really set the sentiment tone in front of AMD, INTC, and XLNX, which are set to report and comment in the next 30 hours, with AMD first up to bat this afternoon.

That’s a huge plus if you are bullish on AMD over the longer time frame and believe this is likely a good spot to add exposure: expectations are now already very beaten down before the market gets the facts. That sharply increases the reward if the facts do not confirm the expectations.

Advanced Micro Devices, Inc. (NASDAQ:AMD) typically guides for the following quarter in the press release when it initially reports, so you won’t need to wait for the conference call to get an initial indication if the company is set to confirm the view forward expressed by TXN (which we covered in detail here).

At this point, the Street is looking for Q4 EPS of $0.11 on revenues of $1.59 billion.

Since the Q2 report shares of AMD have seen a marked deviation from both the broader market and the broader sector; even though recent broader market-driven losses have trimmed gains, shares of AMD still hold a nearly 40% advance since July 25. That’s also important to remember: recent selling hasn’t been technically extraordinary – we have yet to even give back 50% of the advance from the April $10/share level.

That important Fibonacci level sits right now at around $22-22.50, if you’re keeping track.

As far as the backward-looking expectations, the Capital IQ Consensus Estimate calls for Q3 EPS of $0.12 (vs $0.10 a year ago) on revenue growth of 4.1% to $1.71 billion.

The company has documented revenue guidance at $1.65-1.75 billion on non-GAAP gross margin growth of approximately 38%.

The growth factor is expected to be from sales of Ryzen and EPYC products, partially offset by lower sales of GPU products in the blockchain market. If the company can beat and raise with blockchain-based growth in the toilet, it could help to shake off a lot of the stink here and energize some new buying.


The Bird’s Eye

Advanced Micro Devices, Inc. (NASDAQ:AMD) bills itself as a semiconductor company worldwide. It operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom.

The company’s products include x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles.

It provides x86 microprocessors for desktop PCs under the AMD Ryzen, AMD Ryzen Pro, Threadripper, AMD A-Series, AMD E-Series, AMD FX CPU, AMD Athlon CPU and APU, AMD Sempron APU and CPU, and AMD Pro A-Series APU brands; microprocessors for notebook and 2-in-1s under the AMD Ryzen processors with Radeon Vega GPUs, AMD A-Series, AMD E-Series, AMD C-Series, AMD Z-Series, AMD FX APU, AMD Phenom, AMD Athlon CPU and APU, AMD Turion, and AMD Sempron APU and CPU brands; and microprocessors for servers under the AMD EPYC and AMD Opteron brands. It also offers chipsets under the AMD brand; discrete GPUs for desktop and notebook PCs under the AMD Radeon and AMD Embedded Radeon brand; professional graphic products under the AMD Radeon Pro and AMD FirePro brands; and customer-specific solutions based on AMD’s CPU, GPU, and multi-media technologies.

In addition, it provides embedded processor solutions for interactive digital signage, casino gaming, and medical imaging under the AMD Opteron, AMD Athlon, AMD Sempron, AMD Geode, AMD R-Series, G-Series, and AMD Embedded Radeon brands; consumer graphics under the AMD Radeon brand; and semi-custom SoC products.

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