Is AMD's Q1 Earnings a buying opportunity amid the falling stock price coupled with strong expected earnings?
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Closing the earnings week, chip giant Advanced Micro Devices (NASDAQ:AMD) is scheduled to announce Q1 earnings results on Tuesday, May 3rd, after market close.
The consensus EPS Estimate is $0.92 (-3.2% Y/Y) and the consensus Revenue Estimate is $5.58B (compared to $3.45B in year ago quarter).

Quick look at company's growth levels compared to peers:



Over the last 2 years, AMD has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 11 upward revisions and 0 downward. Revenue estimates have seen 10 upward revisions and 0 downward.
While rivals struggled with a tight chip supply market, AMD used that dynamic to grow its margins.
Financial Outlook (Non-GAAP) provided by the company in its Q4 earnings call:



AMD's stronger-than-expected showing was driven by the robust demand for its processors, which are used in a variety of facilities and devices ranging from data centers to computers to gaming consoles.
Given AMD's move to the N5 TSMC node, when the next-generation EPYC server CPU Genoa hits the market in Q4, Raymond James' Chris Caso believes the technology gap between the two companies will widen further.
AMD is also investing in long-term growth with some acquisitions - Pensando (April) and Xilinx (February); the companies are not directed at enhancing AMD's retail offerings; they are aimed at large corporations as AMD looks to push into higher-margin markets.
In last week of April, Raymond James upgraded AMD to Strong Buy from outperform, citing several reasons, including an attractive valuation; it also adds several secular growth areas, a more muted cyclical exposure than other semiconductor stocks.
Peer company Intel forecasted Q2 guidance which suggested a slowdown in the PC market.
YTD, the stock lost 42% amid the tech sell-off driven by rising interest rates and thus presents a buying opportunity investors as investors are attracted by expected growth in Q1 earnings.
With a Buy rating, SA Contributor Jonathan Weber recently wrote, "AMD: Be Greedy When Others Are Fearful" and SM Investor also with a Buy rating believes that AMD is a buy for the long term.

Of the 39 Wall Street Analysts covering the stock, 19 have a Strong Buy while 16 have a Hold rating on the stock.