What's in store for AMD's Q1 earnings after Intel suggested PC downturn nearing end?
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Advanced Micro Devices (NASDAQ:AMD) is scheduled to announce Q1 earnings results on Tuesday, May 2nd, after market close.
The consensus EPS Estimate is $0.56 (-50.4% Y/Y) and the consensus Revenue Estimate is $5.31B (-10.0% Y/Y).
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 0 upward revisions and 29 downward. Revenue estimates have seen 3 upward revisions and 23 downward.
The numerous downward revisions to AMD's estimates reflect a first quarter in which semiconductor sales have still been under pressure and the PC market has continued to remain weak.
"AMDâs results are expected to reflect the negative impacts of a challenging macroeconomic situation and supply chain adversities. High cyclicality and severe downturns in the semiconductor industry is expected to have hurt business and operating results," Zacks research said in an earnings preview last week.
AMD shares in early February jumped after the company reported its Q4 2022 results, as investors reacted favorably to its Q1 outlook.
AMD CEO Lisa Su on the earnings conference call in February had said that AMD expected its data center and embedded systems businesses to remain strong, while also anticipating weakness to persist in its PC and gaming divisions. 
AMD's larger rival Intel (INTC) last week reported a top- and bottom-line beat and provided second quarter guidance that suggested the PC downturn was near an end. The results were met with a positive response, with shares of Intel (INTC) gaining 4%.
Envision Research, investing group leader of Envision Early Retirement, in an earnings preview said it expects to see signs of the end of AMD's margin contraction and also asset utilization contraction.
AMD shares have rebounded 38.4% YTD after suffering a ~55% fall in 2022.
More on semiconductors: 

Global chip sales show signs of life in March, rising 15% from February: BofA
Will Apple, AMD earnings continue tech's 'so far, so good' results?
AMD slips even as Citi sees 'positive' sentiment ahead of Q1 results