Stocks

Google Ad

Advanced Micro Devices reported Mixed Q4 earnings after the close Tuesday but Guided higher over the year. $AMD was the top performing stock in both the S&P500 and Nasdaq 100 in 2018 despite falling 45% and was up around 10% after reporting.

AMD Radeon VII

AMD Radeon™ VII, the world’s first 7nm gaming graphics card for latest AAA, esports and Virtual Reality (VR) titles. 

Advanced Micro Devices, Inc. NASDAQ: AMD Reported Earnings After Close Tuesday

$0.08 EPS as Expected But Missed $1.42B v. 1.44 billion forecast in revenue 

Earnings 

Advanced Micro Devices Inc (AMD) reported fourth-quarter 2018 earnings after the close on Jan 29 earning an adjusted 8 cents a share on sales of $1.42 billion in the December quarter. Analysts had expected earnings of 8 cents on sales of $1.45 billion. In the year-earlier period, AMD earned 8 cents a share on sales of $1.48 billion.

AMD Revenue Trend 1 2019

New Product Updates

AMD  unveiled its new Radeon RX 590 graphics card and its new Radeon Software Adrenalin 2019 Edition which will feature the WattMan technology and be based on the AMD Radeon Graphics Processing Units (GPUs). The card is aimed at gamers seeking superior graphic performance. AMD also launched it's next generation 7-nanometer (nm) Radeon Vega GPU, AMD Radeon VII.

AMD chief competitprs are NVIDIA (NVDA) and Intel.  Analysts will be keyed into GPU adoption rates of AI techniques and machine learning tools in industries like gaming, automotive and blockchain.  Strong adoption of EPYC server processors is another growth catalyst.

AMD has partnerships with major game developers including Ubisoft, Capcom and Rebellion to optimize their next generation of games on Radeon graphics in a most competitive marketplace.

 

Advanced Micro Devices, Inc. NASDAQ: AMD

Market Reaction: Pre-market 21.07 +1.82 (+9.45%)

Highlights

Advanced Micro Devices AMD earnings Q4 2018 results

Outlook

For the current quarter, AMD expects revenue of $1.25 billion, down 24% year over year. It did not give a target for earnings per share. Analysts had been modeling AMD to earn 8 cents a share on sales of $1.48 billion in the March quarter. In the year-earlier quarter, AMD earned 11 cents on sales of $1.65 billion.

Revenue will be down primarily because of lower graphics chip sales due to excess channel inventory, AMD said in a news release. The absence of cryptocurrency-related graphics processing unit revenue also will contribute to the decline, it said. 

AMD expects "high-single-digit percentage revenue growth." The growth will be driven by sales of the company's Ryzen, Epyc and Radeon data-center processors as the company ramps production of its 7-nanometer chips. Analysts were modeling revenue growth of 6% to $6.9 billion for the year. AMD also expects an adjusted gross profit margin of greater than 41% for 2019. Its gross profit margin was 39% in 2018.

Before the report AMD stock dropped 4.6% to 19.25. On Monday, AMD stock fell 8% after graphics-chip rival Nvidia (NVDA) preannounced weaker-than-expected December-quarter sales. Last Thursday, AMD's rival in PC and server processors, Intel (INTC), delivered a mixed December-quarter report and disappointed with its March-quarter guidance.

"Despite near-term graphics headwinds, 2019 is shaping up to be another exciting year driven by the launch of our broadest and most competitive product portfolio ever with our next-generation 7-nanometer Ryzen, Radeon, and Epyc products," Chief Executive Lisa Su said in a written statement.

 10 Best Nasdaq 1oo Stocks 2018

AMD Q3 Earnings Recap

 $0.13 Met Beat $0.13 EPS Forecast But $1.65 billion Missed $1.7 billion forecast in revenue 

Earnings

AMD earned an adjusted 13 cents a share on sales of $1.65 billion in the September quarter matching analysts expected EPS of 13 cents a share but miising the forecaston sales of $1.7 billion. In the year-earlier quarter, AMD earned 10 cents a share on sales of $1.64 billion.

Advanced Micro Devices, Inc. NASDAQ: AMD

Market Reaction > Pre-market 18.25 −4.54 (-19.92%)

Highlights

AMD's 3Q revenue dropped 6% from the second quarter. The company blamed lower-than-expected graphics chip sales for the decrease.

Going forward, we believe we are well-positioned for further market share gains as we continue making significant progress towards our long-term financial targets."  Chief Executive Lisa Su said in a news release

  • The company's gross profit margin expanded to 40%, up from 36% 

Outlook

In the fourth quarter, AMD expects sales to rise 8% year over year to $1.45 billion. But Wall Street was forecasting revenue of $1.6 billion. Advanced Micro Devices did not give a target for earnings per share. Analysts on average were expecting it to earn 11 cents a share in the December quarter.

Tesla AI Chip From AMD


Tesla Self DrivingAMD Artifical Intelligence Chips are used in Tesla autonomus driving

Tesla $TSLA has been developing an Articial Intelligance (AI) Chip for self driving car using $AMD intellectual property.Tesla's new chip will likely reduce its reliance on Nvidia $NVDA. $AMD spin-off GlobalFoundries CEO Sanjay Jha said it's working directly with Tesla on the chip. GlobalFoundries has a wafer supply agreement in place with AMD through 2020.

Tesla has over 50 employees involved in the project, including the head of Autopilot hardware and software Jim Keller. Keller joined Tesla in early 2016 following two stints at AMD and one at Apple. Keller is reknowned in the industry and his chips include the design of Apple's A4 and A5 iPhone chips.

Last September CNBC reported that sources say $TSLA has received back samples of the first implementation of its processor and is now running tests on it.Tesla CEO Elon Musk has promised that autonomous driving capability will be available to consumers in 2019. The key is a chip that power-efficient and able to harness AI to drive a car autonomusy. Current Tesla autopilot self-driving vehicles use Nvidia graphics processing units and Tesla has used chips from Mobileye (now part of Intel) before. The notorious $TSLA auto pilot accident last year was using Mobileye chips.

Source: AMD

Live From The Pit

Log in to comment
Discuss this article in the forums (1 replies).