AMD Share price: What to Expect from Q2 Results
When does AMD report earnings?
Advanced Micro Devices Inc (All Sessions) is set to release its Q2 financial results on 27 July, after market closes. At the time of writing, Refinitiv estimates its Q2 earnings per share to be US$0.54, a 3.8% increase from the previous quarter.
What to expect
AMD has largely benefited from the Covid-19 pandemic, seeing strong demand across all its products in the likes of consoles, PCs (CPUs and GPUs) and server CPUs. Revenue from Q3 2020 saw a surge, which continues into 2021, although one may note that growth sequentially may have slowed slightly as economies shift towards normalisation.
In the PC space, its revenue is growing significantly faster than the overall market, potentially suggesting some gains in market share against its competitors such as Intel Corp (All Sessions).
Its strength in seven nanometre-based processors, manufactured by Taiwan Semiconductor Manufacturing Co Ltd – ADR, may continue to draw a competitive edge from Intel with its focus on the premium segments, rather than low-end units. This may have been reflected in its gross margins, which have increased steadily over the past three quarters, a potential result of higher average selling prices for its premium products. Investors will be on watch for whether the growth momentum continues into the upcoming results, as demand continues to outstrip supply.