AMD Stock fans, mark your calendars for May 3
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Advanced micro-systems (NASDAQ:AMD), one of the leading technology companies in the market has been steadily growing and expanding its market share. AMD stock has generated strong returns for investors in the past and shows tremendous growth potential. The stock is trading at $93 today, down from $102 last week. AMD stock has fallen 9% over the past week, but its quarterly earnings announcement could send the stock higher.
The company announced that it would report first quarter results on May 3, 2022. The semiconductor industry is a high-growth sector, but it has been under pressure due to the slowing economy. The next interest rate hikes by the Federal Reserve prevented consumers from making purchasing decisions.
Investors are eyeing strong numbers in quarterly results. Analysts expect the company announces revenue of $5.52 billion. AMD reported last quarter earnings of $0.81 per share and revenue of $4.8 billion. AMD is forecasting revenue of $5 billion plus or minus $100 million for this quarter and revenue of $21.5 billion for the year.
Analysts aren’t happy with the company’s performance, leading to a few downgrades. Erste Group analyst Hans Engel believes slowing revenue growth will also dampen earnings growth at AMD, now AMD on hold. Further away, William Steina Truist analyst also has a holding rating with a target price of $111, indicating a drop in consumer demand for electronic products like semiconductors. My InvestorPlace His colleague Chris Tyler thinks the time has come to sell AMD shares.
In addition to acquiring Xilinx, the company recently announced that it has agreed to acquire Thinkinga $1.9 billion business services startup.
The quarterly results will be interesting. If AMD manages to live up to analysts’ expectations, it will likely help slow the slowdown in AMD stock.
At the date of publication, Vandita Jadeja did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.