Advanced Micro Devices, Inc. (NASDAQ:AMD) has more than doubled in value from its lowest pandemic price point amid improving underlying fundamentals. As the company prepares to report its earnings, the Q4 report could be the catalyst to steer the stock to new heights.
AMD Q4 Estimates
The chip giant is projecting revenues of about $3 billion-plus or minus $100 million. Much of the revenues are expected to come from the company’s CPU division. Earnings have also been on an impressive run in recent quarters, increasing by over 100% in 2020 alone.
AMD Q4 earnings are more than expected to top estimates as the company’s arsenal of products made up of chips used to power all sorts of hardware continues to elicit strong demand. The company’s processors are currently some of the most sought after in the powering of everything from gaming consoles to laptops and data centers.
The chip giant continues to attract strong demand, helped by emerging verticals such as the work from home and learn from home realities. The unending COVID-19 pandemic has triggered a new way of life.
Competitive Edge
Similarly, AMD has affirmed its credential in the chip business thanks to investments across various segments. It now boasts of powerful processors that are had to compare to fiercest rival Intel Corporation (NASDAQ: INTC). Likewise, the company continues to beat its peer's thanks to superior production technology and super planning.
Conversely, it won’t come as a surprise on AMD whopping product sales across a majority of its microchips. The company is also believed to have benefited a great deal from its newly minted deal with Amazon Web Services. AWS has increased orders for AMD processors that it plans to use to enhance it's game server hosting solution.
Ahead of the earnings report, investors also await to see how research and development expenses are likely to affect earnings and margins. Operating income is up by more than 800% over the past three years to highs of $631 million.