Will strong growth momentum continue for AMD in Q4?
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Advanced Micro Devices (NASDAQ:AMD) is scheduled to announce Q4 earnings results on Tuesday, February 1st, after market close.
The consensus EPS Estimate is $0.76 (+46.2% Y/Y) and the consensus Revenue Estimate is $4.52B (+39.5% Y/Y).
Company growth prospects are strong despite the recent price drop of about 11.5% over the last five trading session.



Revenue has been steadily driving upwards with a 54% Y/Y during Q3.
Company has seen strong gross margin expansion with last two quarter's at 48%; graphically representation in company presentation.
The gross margin rise was supported by increases were primarily driven by a richer mix of EPYCâ¢, Ryzenâ¢ and Radeonâ¢ processor sales.
During Q3 earnings, company had guided for Q4, revenue of ~$4.5B, plus or minus $100M, and non-GAAP gross margin of 49.5%.
â3rd Gen EPYC processor shipments ramped significantly in the quarter as our data center sales more than doubled year-over-year. Our business significantly accelerated in 2021, growing faster than the market based on our leadership products and consistent execution.â said CEO Dr. Lisa Su during Q3 release.
The recent price slump was aided by a downgraded by Piper Snadler on growth concerns; Analyst Harsh Kumar suggested that profitability would improve, with operating margins approaching 26%, but the analyst expects the deal to add "only ... a few cents" in earnings in the first full year, which is below what was initially expected.
Earlier a little earlier, Wells Fargo reiterated its overweight rating on the stock and $180 PT.
Company has a comparative advantage when chip shortages are hurting industry players due to its long-term relationship with main supplier, Taiwan Semiconductor Manufacturing (NYSE:TSM).
Over the last 2 years, AMD has beaten EPS estimates 88% of the time and has beaten revenue estimates 88% of the time.
Over the last 3 months, EPS estimates have seen 7 upward revisions and 2 downward. Revenue estimates have seen 5 upward revisions and 1 downward.
Contributor comments on the stock: 'AMD: Don't Fear PC Cycle Weakness'
'I think that AMD stock is fairly valued, based on a peer comparison and an evaluation of its market share gain potential and the short-term impact of the Xilinx acquisition.' said contributor The Value Pendulum.
Read on company's planned acquisition of Xilinx.
A look at company's comparative price performance over the last six months.