Despite facing challenges earlier this year, the launch of its flagship MI300 AI accelerator has reignited investor interest.
Analysts expect AMD to report $5.73 billion in revenue and earnings per share of 68 cents. The data center segment is anticipated to be a key driver, building on the impressive 80% growth seen in the previous quarter. The company's Ryzen processors are also gaining traction in the recovering PC market.
The excitement surrounding the MI300 is so intense that it has nearly overshadowed AMD's earnings report. AMD's management is concentrating on boosting MI300 production, aiming to exceed the $4 billion revenue target. If AMD's AI chip sales outperform expectations by year-end, the stock price could see a positive impact.
Reviewing historical performance, AMD has generally exceeded earnings estimates over the past two years, providing a positive track record that might influence expectations.Additionally, AMD's average debt level and lack of dividend payments are warning signs, reflecting a moderate financial health score of 2 out of 5.
As AMD prepares to release its earnings report, investors will closely watch for any updates on the company's financial health and performance metrics.In the past two weeks, AMD has begun to trade below the ascending trend line that originated in October 2022, signaling a potentially negative trend. Historically, AMD has found support at the 89-EMA on the weekly chart during correction phases. Currently, it may find intermediate support between $130 and $133.
Bearish signals are currently dominant for AMD. These include the negative crossover of short-term EMAs on the weekly chart and the sharp downward trend of the Stochastic RSI.