- AMD on Tuesday announced in line fourth-quarter results and guided for a weaker first quarter.
- The company said it expects full-year 2019 revenue to grow by a high single-digit percentage.
- Wall Street sees the revenue miss as no surprise, and has mixed opinions on whether its coming 7-nanometre central processing unit can grab enough market share from Intel.
- Watch AMD trade live.
The chipmaker said it earned $US0.08 a share, matching the Wall Street consensus. Its top line came in at $US1.42 billion, just missing the $US1.44 billion that analysts surveyed by Bloomberg were expecting.
Looking ahead, AMD said it sees its first-quarter revenue in the range of $US1.2 billion to $US1.3 billion, missing the $US1.47 billion that was anticipated. But the company said the upcoming rollout of its 7-nanometre products and strong sales from Ryzen, EPYC, and Radeon give it the confidence to guide its full-year 2019 revenue growth rate at a high single-digit percentage.
Analysts across Wall Street see the revenue miss as no surprise, especially after rival Nvidia cut its quarterly revenue guidance on Monday. The main debate is around AMD’s full-year guidance and whether its coming 7-nanometre central processing unit can grab enough market share from Intel.
Here’s what Wall Street analysts are saying about the quarter:
RBC Capital Markets
Price target: $US34
Price target: $US30
Susquehanna International Group
Price target: $US22 (from $US18)
Price target: $US20 (from $US18)
“We expect AMD to drive CPU revenue growth in 2019 for both client PC and server with our assumption of the company gaining modest market share in both segments, Looking beyond this year, we remain less certain on further share gains as we expect Intel to broaden its 10nm portfolio. Nevertheless, we believe AMD is executing well on its product roadmap and making progress toward its 2020 financial model.”
Price target: $US17
“While AMD had clearly signalled some 1q challenges, guidance was 15% below current consensus (and 21% below where consensus was before management had cautionary comments on 1q at a conference in December), but the company maintained high single digit growth for the year, which seems like a very high bar in light of those 1q challenges,” said Joseph Moore at Morgan Stanley.
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