Semiconductor player Advanced Micro Devices (AMD) will release its Q2 2024 financial results on July 30. Analysts are expecting earnings per share to come in at $0.68, up 17% from the year-ago quarter. Meanwhile, analysts expect revenues of $5.72 billion, reflecting a 6.7% year-over-year increase, according to TipRanks’ data.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Factors to Consider Ahead of Q2
AMD’s newer products are clearly driving customer demand, especially in high-performance computing and generative AI. Also, according to TipRanks’ Bulls Say, Bears Say tool, bullish analysts believe that AMD’s AI offerings and its new product lineup should help the company gain market share in the client and server markets.
However, increasing competition from Nividia (NVDA) and cyclical weaknesses in AMD’s non-AI businesses such as server CPU, client, gaming, and embedded, remain significant concerns for investors.
While AMD has seen a gain of about 22% over the past year, it has dropped 13% in the last three months. Given these factors, AMD’s price movement following its Q2 earnings report tomorrow will be closely watched.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 8.95% move in either direction.
What Is the Outlook for AMD Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMD stock based on 30 Buys and six Holds assigned in the past three months, as indicated by the graphic below. The average AMD stock price target is $195.03, implying a upside potential of 39.32%.
