AMD Earnings Preview

Shares of Advanced Micro Devices (NASDAQ: AMD) usually exhibit more volatility in the weeks preceding the quarterly earnings report. Unlike last quarter, AMD stock is down from its highs, giving the stock a chance of not falling more after its results. Investors will look for key metrics that includes sales from the new product lines.

Ryzen Mobile

AMD launched Ryzen mobile processors in the last quarter. It may book more sales from the notebook market, depending on the number of OEMs making AMD-powered systems available. If the price difference is big enough from Intel-based notebooks, consumers may pick systems with Ryzen chips in them.

Sales of AMD’s most powerful desktop chip, Threadripper, may benefit from a strong holiday period. The company built the awareness for the chip for a few months while chip review sites highlighted the performance and price advantages Threadripper had over Intel’s i9 chip.

In the corporate space, EPYC could bring in more meaningful revenue for AMD. Though modest, any installation of the scaleable chip will lead to customers re-ordering more EPYC chips. The system may have enormous amounts of memory in its configuration. It is ideal for cloud and data center customers. Since these markets are still strong, EPYC should support AMD’s characteristic as a growth company.

Analysts, on average, are upbeat with AMD stock. The average Wall Street target price is $14.28. Conversely, users building fair value models on AMD stock have an average $13.77 share price target.