Jump to content

US earnings preview: AMD

Recommended Posts

AMD is scheduled to report its first quarter (Q1) earnings after the market closes on Tuesday, the 2nd of May, 2023.


BG_wall_street_NYSE_234234234.jpgSource: Bloomberg

 Tony Sycamore | Market Analyst, Australia | Publication date: Tuesday 02 May 2023 

Key dates

AMD is scheduled to report its first quarter (Q1) earnings after the market closes on Tuesday, the 2nd of May, 2023.

Company profile

The share price of AMD fell 55% in 2022 as the impact of higher interest rates and inflation weighed on tech stocks.

The fall in AMD’s share price was compounded by a “weak PC environment in the second half of the year”, a reference to lower consumer demand for finished electronics and an excess of parts needed to make PCs and servers.

The company reported the following key numbers in its Q4 2022 earnings call.

  • Revenue of $5.6 billion increased 16% year-over-year, primarily driven by growth across the Embedded and Data Center segments, partially offset by lower Client and Gaming segment revenue
  • Gross margin was 43%, a decrease of 7 percentage points year-over-year, primarily due to the amortization of intangible assets associated with the Xilinx acquisition
  • Non-GAAP diluted earnings per share was $0.69 compared to $0.92 a year ago, primarily due to lower Client segment operating income.
  • Cash, cash equivalents and short-term investments were $5.9 billion at the end of the quarter. The company returned $250 million to shareholders through share repurchases in the quarter.


What to expect

During its Q4 2022 earnings report, AMD provided guidance for the first quarter of 2023. The company expects revenue to be approximately $5.3 billion, plus or minus $300 million, a decrease of approximately 10% year-over-year.

Moreover, the Client and Gaming segments are expected to decline year-over-year, partially offset by Embedded and Data Center segment growth. AMD expects non-GAAP gross margin to be approximately 50% in the first quarter of 2023.

AMD CEO Lisa Su told analysts the PC environment was “weak.”

She went on to state, “Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio.”

Key financials: summary

  • Revenue: $5.3 billion vs $5.6 billion in Q4 2022
  • Diluted EPS: $0.57c vs $0.69c per share in Q4 2022.

AMD revenue chart


AMD1-TS-010523.pngSource: AMD

AMD EPS chart


AMD2-TS-010523.pngSource: AMD

What else to watch out for?

  • Forward guidance: Comments on the macro environment around consumer demand and excess inventory
  • Gross Margins: A key metric for chip makers - should be around 50%
  • Datacenter: Comments on increased demand for AI accelerators
  • Note: Tech Stocks Earnings in Q1 2023 have been better than expected from companies including Microsoft, Meta, Google, and Amazon, not to mention AMD’s main competitor Intel.

AMD technical analysis

The AMD share price fell over 65% from its bull market $164.46 high in November 2021 to its $54.67 low in October 2022.

AMD weekly chart


AMD3-TS-010523.pngSource: TradingView

During the first quarter of 2023, the share price of AMD rallied over 50% as tech stocks enjoyed their best quarter since Q2 2020.

While the rally is viewed as a countertrend, it appears incomplete and is eyeing the resistance at $90 coming from the downtrend from the $102.43 low.

A sustained break above $90 should see the rally test and break the $102.43 high of March, before hitting a solid band of resistance $105/110.00 area.

AMD daily chart


AMD4-TS-010523.pngSource: TradingView

  1. TradingView: the figures stated are as of May 1, 2023. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.



AMD is scheduled to report its first quarter (Q1) earnings after the market closes on Tuesday, the 2nd of May 2023.

Given that the technical setup suggests the countertrend rally has further to go and the tendency for tech earnings this quarter to beat expectations, we expect the AMD share price to rally above the recent $102.43 high in the sessions ahead.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • ASX: ASX LIMITED - ASX Elliott Elliott Wave Technical Analysis TradingLounge (1D Chart)   Greetings, Our Elliott Wave analysis today updates the Australian Stock Exchange (ASX) with ASX LIMITED - ASX. We observe that ASX LIMITED is approaching the end of wave 2-grey, but needs more evidence on price action for confirmation, also allowing wave 3-grey to be opened to push higher thereafter.   ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis   ASX: ASX LIMITED - ASX  1D Chart (Semilog Scale) Analysis Function: Major (Minor degree, grey) Mode: Motive Structure: Impulse Position: Wave (c)-orange of Wave ((y))-navy of Wave 2-grey Details: The short-term outlook indicates that the price has continued to decline longer than expected, with wave 2-grey retracing quite deeply. Essentially, it may continue this action. However, a drop below 53.98 will call for a reassessment of the situation. Invalidation point: 53.98   ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis TradingLounge (4- Hour Chart) ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis ASX: ASX LIMITED - ASX  4-Hour Chart Analysis Function: Major (Minor degree, grey) Mode: Corrective Structure: Double Zigzag Position: Wave (c)-orange of Wave ((y))-navy of Wave 2-grey Details: The short-term outlook shows that wave (c)-orange is about to complete, and at the same time it will also complete wave 2-grey, allowing wave 3-grey to open to push higher. The important thing is that the price needs to rise above 59.39, which is also the first step to renew the long-term bullish view with wave 3-grey. Invalidation point: 64.32   Conclusion:   Our analysis, forecast of contextual trends, and short-term outlook for ASX: ASX LIMITED - ASX aim to provide readers with insights into the current market trends and how to capitalize on them effectively. We offer specific price points that act as validation or invalidation signals for our wave count, enhancing the confidence in our perspective. By combining these factors, we strive to offer readers the most objective and professional perspective on market trends.   Technical Analyst: Hua (Shane) Cuong, CEWA-M (Master’s Designation). Source : Tradinglounge.com get trial here!  
    • I overheard a discussion between two friends and one was telling the other that Bitcoin is a scam and that a lot of people preached about the halving and how people could cashout from it. The other friend was trying to convince him to continue holding his asset but he refused and replied that nothing would stop him from selling the coins he's holding.  When I heard that man mentioned cashing out from the halving, I understood that he might know about Bitcoin but he's not properly enlightened concerning it. A lot of expectations were cut short after the halving event cause most people expected Bitcoin to set a new height of $80k but then it didn't even get close to the previous all time high and have reduced below $60k currently.  I think people shouldn't get discourage by that, though I didn't experience other halvings cause I had zero knowledge about Bitcoin then but i think something similar have occurred before in one of the previous halving where Bitcoin price didn't go up as expected but later traced back and went up after some period, a lot of people might begin to panic and sell their coins but I still see this an opportunity to buy more Bitcoin and for those who are not opportuned to do so, holding is the best option, please correct me if you think am wrong  
    • S&P 500, SPY, NASDAQ 100, QQQ, RUSSELL 2000, DAX 40, FTSE 100, ASX 200. Featuring Elliott Wave Technical Analysis Elliott Wave Analysis Indices: Triple Witching Friday 21 June - SP500 and NASDAQ 100: Both indices are in Elliott Wave v of (iii) of iii) of 3 of (5) of 3) of I. The ETFs SPY and QQQ share the same pattern. - RUT (IWM), DAX, and FTSE 100: These indices are struggling to lift off lows. They may need another low to complete their corrective patterns. We are looking for long trade setups if certain levels are met. - ASX 200: Needs to develop support at 7800 to confirm an uptrend and avoid a larger Elliott Wave Triangle pattern. Trading Strategies: - Holding long positions in SP500, NASDAQ, SPY, and QQQ, which are currently the best trade positions. Video Chapters  00:00 SP 500 (SPX), SPY ETF 07:27 NASDAQ (NDX), QQQ ETF 13:39 Russell 2000 (RUT) IWM ETF 15:15 DAX 40 (DAX) 16:33 FTSE 100 UKX (UK100) 19:18 S&P/ASX 200 (XJO) 25:39 End Analyst Peter Mathers TradingLounge  
  • Create New...