AMD stock price: what to expect from second quarter results

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When does AMD declare its income?

Advanced Micro Devices Inc (All Sessions) is expected to release its second quarter financial results on July 27 after market close. As of this writing, Refinitiv estimates its second quarter earnings per share at US $ 0.54, an increase of 3.8% from the previous quarter.

What to expect

AMD has benefited greatly from the Covid-19 pandemic, experiencing high demand for all of its products such as consoles, PCs (CPU and GPU) and server processors. Q3 2020 revenue saw an increase, which continues into 2021, although it can be noted that sequential growth may have slowed slightly as economies move towards normalization.

In the PC space, its revenue is growing significantly faster than the overall market, potentially suggesting market share gains over competitors such as Intel Corp (All Sessions).

Its strength in seven nanoscale processors, manufactured by Taiwan Semiconductor Manufacturing Co Ltd – ADR, could continue to gain competitive advantage from Intel by focusing on high-end segments rather than low-end units. This may have been reflected in its gross margins, which have grown steadily over the past three quarters, a potential result of higher average selling prices for its premium products. Investors will be watching if the growth momentum continues in the coming earnings as demand continues to outstrip supply.

Breakdown of revenues and overall gross margin


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