Here come AMD earnings…


AMD (Advanced Micro Devices) is set to report its second-quarter results after Wednesday’s closing bell, with Wall Street analysts surveyed by Bloomberg expecting adjusted earnings of $US0.13 a share on revenue of $US1.72 billion.

Semiconductor makers, including both AMD and its competitor Nvidia, got an unexpected bump from the cryptocurrency craze of early 2017. However, as prices and interest have waned – bitcoin is down 39% since January 1 – so too has the interest in graphics cards from would-be crypto miners.

Luckily, sales of AMD’s newest Ryzen processor should fill any gap, Credit Suisse told clients ahead of the earnings report.

“While crypto at roughly 15% of revenue continues to be a headwind to 2H estimates, incremental growth from Ryzen channel fill and share gains in GPU at AAPL and INTC should protect 2H estimates from downward revision,” John Pitzer, the bank’s head of technology research, said in a note to clients this week.

“While there are several moving pieces and still a large degree of uncertainty – the current level of GPU-mining demand is most likely unsustainable, and could present a material headwind to C2H18 as AMD sees a meaningful reduction to our estimated ~$US460 million of calendar year 2018 crypto-related revenue.”

Pitzer has a $US13.50 price target for the stock.

AMD was gaining popularity among younger investors on the stock trading app Robinhood ahead of the earnings report. 128,604 investors held the stock, according to numbers on the brokerage’s website, up from 125,648 a week ago – an increase of roughly 3,000, making it one of the most popular stocks on the platform.

AMD shares are up 57% this year.

Check back here after markets close for the full earnings report.

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