After Intel (INTC) and Qualcomm (QCOM) reported disappointing results, semiconductor company Advanced Micro Devices (AMD) is expected to report results later today.
The company is expected to report higher revenue and net profit in the second quarter as shipments improve on easing supply chain bottlenecks and buoyant demand for chips. The consensus estimate is AMD earnings per share of $1.04, while revenue is expected to reach $6.5 billion, up nearly 70% from a year ago. year.
Analysts will be looking for on-demand commentary amid slowing PC and smartphone markets. Qualcomm had given a lackluster forecast for the current period, saying a weaker economy will hurt consumer spending on mobile devices. Intel reported second-quarter results well below analysts’ estimates. The company said its data center chip business will grow more slowly than the overall data center market over the next two years.
However, AMD management released strong second-quarter sales guidance in June, indicating that the company continues to make progress in its most lucrative market, data center processors.
AMD shares are up 25% in the past month, but down more than 35% for the year.
“Semiconductors have become the de facto transportation stocks of the 21st century and are a strong indicator of global growth. The mixed results we’re seeing from chip companies paints a pretty accurate picture of the downturns happening across all developed markets,” Caleb said. Silver, editor of Investopedia.