Once trading activity comes to an end today, Advanced Micro Devices (AMD) will take its turn to deliver 4Q21’s financial statement.
It has been an uncharacteristic start to the year for this perennial high-flyer, with the shares not immune to the wider market pullback; the stock sits 20% into the red so far in 2022, making for an unfamiliar recent sight for AMD investors.
However, it should be business as usual when the company reports the quarter’s financials, according to Rosenblatt’s Hans Mosesmann. Looking ahead to the print, the 5-star analyst expects the company to beat both his and the Street’s expectations of a mid-single-digit sequential increase on the top-line, while EPS should also come in above his and the consensus estimate of $0.75 and $0.76, respectively. (To watch Mosesmann’s track record, click here)
While offset by the ongoing supply constraints, Mosesmann anticipates the quarter will be “driven by strength across the board in key product areas and, in particular, data center and gaming.”
As far as expectations for the March quarter go, here Mosesmann also thinks the company will guide above his and the Street’s forecast of a low-single-digit quarter-over-quarter drop for revenue and EPS of $0.71/$0.69.
The analyst sees enterprise providing an extra “growth vector,” in the March quarter, and boosted by new product cycles, all product segments should see further growth. Data center GPU compute growth (CDNA 2 Instinct momentum) and higher ASPs should provide further support.
So, what else should investors look out for on the call? Mosesmann will be keeping an eye out for: “1) The company's product roadmap and feedback on new/existing products, 2) Supply constraints (If constraints lessen at a faster clip, this could open up the gates for more data center growth), 3) PC and data center demand for 2022, 4) The potential closing date of the $35 billion all-stock acquisition of Xilinx, and 5) An update on the company's 2022 guide.”
Based on all of the above factors, Latimore rates AMD shares a Buy and set a $180 price target. Apparently, the analyst believes the stock could surge ~58% over the next twelve months.
Most analysts agree with Mosesmann’s assessment; the stock has a Strong Buy consensus rating based on 12 Buys vs. 4 Holds. While the average price target is a more modest, at $156 and change, the figure still represents one-year upside of 37%. (See AMD stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.