AMD is slipping ahead of earnings

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  • AMD is expected to report fourth-quarter earnings on Tuesday.
  • Investors will be watching for comment about the Spectre CPU flaws and supply issues plaguing the company.
  • Millennials are selling shares ahead of the report.
  • Watch the stock trade in real time here.

AMD is set to report its fourth-quarter earnings after the bell on Tuesday.

Analysts are expecting the company to report adjusted earnings of $US0.05 per share on revenue of $US1.408 billion. Wall Street is mostly neutral on the stock ahead of the report, with 14 of the 28 analysts tracked by Bloomberg rating the company as a hold. 10 analysts rate the company a buy.

John Pitzer, an analyst at Credit Suisse, said that AMD has a number of tailwinds that could boost the company’s earnings report higher than expectations. Cryptocurrency miners have been buying the company’s GPUs en masse to speed up their mining computers, which would have become more profitable in recent months thanks to the spike in the price of many cryptocurrencies.

Millennial investors, who picked AMD as their favourite stock of 2017, are a bit more hesitant going into the company’s report. Young users of the trading app Robinhood are selling shares of the company about 5% more than they are buying shares, according to Robinhood.

Investors will be looking for the company to comment on the recent disclosure of the CPU flaws known as Spectre and Meltdown. The security flaws affect nearly every CPU manufacturer, and patches for the flaw could significantly affect performance, according to some reports. Intel reported that it hadn’t seen a material impact on sales as a result of the flaws, and Pitzer said this is good news for AMD.

It’s worth noting that Pitzer previously said Intel wouldn’t be incentivized to guide to lower sales as a result of the Spectre and Meltdown flaws, as it could turn into a self-fulfilling prophecy if enterprise customers looked elsewhere for their chips as a result of the lower guidance.

Intel has taken the brunt of the criticism over the flaws and their patches. Intel’s stock has risen just 2.05% this year, while AMD shares are up 16.02%.

AMD will report its fourth-quarter earnings after the bell on Tuesday.

This page will be updated with the most recent earnings results as they are reported. Check back for more.

Watch AMD stock trade in real time here.

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