Advanced Micro Devices Stock FY2023 Q3 Third-party Analysts' Forecast & Preview

AMD's stock price has risen significantly in 2023, gaining almost 70% as of August 30. However, the company's financial performance has been lackluster. AMD's revenue in the first half of 2023 dropped almost 14% compared to the same period in 2022, largely due to weak sales of personal computers. The PC market decline has weighed heavily on AMD's processor and graphics card businesses.

While the PC market shows some signs of stabilizing, it is expected to remain challenging through the end of 2023. As a result, third-party analysts forecast AMD's revenue will decline about 3% for the full year 2023 compared to 2022. Earnings per share are projected to drop around 21% year-over-year, as stated in the Motley Fool.

AMD's stock price surge appears disconnected from the company's near-term financial results. The price-to-sales ratio has jumped to around 8x at present, up from 4x at the end of 2022.

Some optimism exists for a potential turnaround in AMD's growth starting in 2024, driven by new AI accelerator chips. But AMD's business is likely to remain under pressure in 2023 from weak PC-related demand.

Source: AMD Stock: Bear vs. Bull (The Motley Fool) >>

Part 2：Advanced Micro Devices FY2023 Q2 Earnings Report Recap

1. Advanced Micro Devices Key Indicators and Historical Earnings Report

• - Advanced Micro Devices FY2023 Q2 EPS was $0.02, YOY -92.59%
• - Advanced Micro Devices PE Ratio today is -- 
• - Advanced Micro Devices FY2023 Q2 Revenue was $5.4B, YOY -18.18% 
• - Advanced Micro Devices FY2023 Q2 FCF was $254M, YOY -71.96%
• - Advanced Micro Devices FY2023 Q2 Current Ratio was 2.18, YOY -10.57% 
• - Advanced Micro Devices FY2023 Q2 ROA was 0.04%, YOY -94.02%
• - Advanced Micro Devices FY2023 Q2 ROE was 0.05%, YOY -93.92%
• - Advanced Micro Devices FY2023 Q2 Gross Margin was 45.59%, YOY -1.39% 
• - Advanced Micro Devices FY2023 Q2 Net Margin was 0.50%, YOY -92.62%

For more information, such as definitions and explanations of the above technical terms, please view:

Interpretation of Key Indicators >>

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2. Advanced Micro Devices FY2023 Q2 Financial Statement Analysis

• AMD reported mixed financial results for the second quarter of 2023. Revenue was flat quarter-over-quarter at $5.4 billion, but down 18% year-over-year. Non-GAAP gross margin held steady at 50% sequentially but declined from 54% in the year-ago quarter.

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  On an operating basis, AMD swung to a small GAAP operating loss of $20 million compared to income of $526 million in Q2 2022. Non-GAAP operating income declined slightly quarter-over-quarter and was down 46% year-over-year.

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  By segment, Data Center revenue grew 2% sequentially driven by higher EPYC server CPU sales, but declined 11% year-over-year due to lower demand. Client segment revenue jumped 35% quarter-over-quarter thanks to strong Ryzen 7000 sales, but plunged 54% from last year due to weak PC market conditions. Gaming revenue dropped 10% sequentially and 4% year-over-year. Embedded segment revenue fell 7% sequentially but rose 16% annually.

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  AMD reported GAAP net income of $27 million or $0.02 per share, compared to a loss of $139 million or $0.09 per share last quarter. Non-GAAP net income was down 2% sequentially and 44% year-over-year.

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  AMD expects third-quarter revenue to grow 6% sequentially to around $5.7 billion driven by Data Center and Client segments. The company anticipates non-GAAP gross margin to be approximately 51% next quarter.

Source: AMD Reports Second Quarter 2023 Financial Results (ir.amd.com) >>

Part 3：Advanced Micro Devices FY2023 Q3 Earnings Report Forecast & Preview

1. Advanced Micro Devices FY2023 Q3 Forecast By Third Party Analyst Rating, September 26th

Following an extensive evaluation of Tesla's financial data, revenue, and stock trends over the last few quarters by more than 29 third-party financial analysts, AMD Stock has been given a Strong Buy rating. Analysts forecast an average stock price of $139.510 (Average) for the next 12 months.

- Third Party Analyst rating: Strong Buy

- Advanced Micro Devices Price Target: $139.510

- Forecast of FY2023 Q3 EPS: $0.229

- Forecast of FY2023 Q3 Revenue: $5.7B

- Forecast of FY2023 Q3 EBIT: $1.3B

Source: https://www.benzinga.com/quote/AMD/analyst-ratings

For more information on what the analyst ratings may mean, visit https://pro.benzinga.com/blog/what-do-stock-analyst-ratings-mean/ (Benzinga is not affiliated with Moomoo Technologies Inc., Moomoo Financial Inc., or its affiliates.)

2. Advanced Micro Devices Forecast By Technical Analysis, September 26th, 2023

For more information, such as definitions and explanations of the above technical terms, please view: 

Interpretation of technical indicators >>

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