How "Advanced Micro Devices" can advance after the report?
Advanced Micro Devices (AMD) Earnings for Q1 will be out on Tuesday, May 3, after market close. The report will cover the fiscal quarter ending March 2022. Zacks Consensus Estimate for Q1 earnings per share sits at $0.91, up almost 75% from the same quarter year ago at $0.52. In all past four quarters, AMD could beat the estimates. Q4 2021, EPS saw $0.92 with 4.83B revenue, up 49% annually and 12% seasonally. For Q1, consensus estimates for revenue are 5.01B.
After the Covid-19 crisis, the world changed in many aspects, and one of the results of these changes was a higher demand for Micro Devices, which is the main activity of AMD. Lately, the company has focused on the game industry and improved its computing and graphics segment, bringing the best revenue growth. We can see this improvement in RyzenTM and RadeonTM processor sales reports. In this report also, we have to focus more on them and see how they advanced in the first quarter, especially knowing that the company has recently raised its selling prices.
Considering the current situation with the weakness in the semiconductor space throughout 2021-2, prominent investors of the company most probably will ignore any EPS or revenue miss, hoping to see the results of the latest changes in the following quarters.
We have to focus on several points in this report and after report news. First of all, the latest update from purchasing process of Pensando Systems Inc.'s Latest reports was about an agreement with a $1.9B value to pay for this "networking and security services" provider company. The deal is expected to close in Q2 2022
Also, its plans for Pensando, Enterprise, Embedded, and Semi-Custom segments should be in the spotlight. Overall, analysts expect to see its rapid growth continue through 2022, making it one of the most exciting investments, especially for young investors.
From the technical point of view, as of May 1, 2022, AMD has given up all its 2021 gains. As you can see in the figure below, first resistance and support sit at $99 and $73. Technical indicators remain bearish still with higher market volume, which can support the bears for a bit longer time; however, in the bigger picture, we can count on bulls as long as it is above $73.