AMD surpasses expectations and raises AI chip sales for 2024
Advanced Micro Devices (AMD) reported impressive quarterly results, beating analysts' expectations and raising its revenue forecast for artificial intelligence (AI) chips through 2024. According to the company's projections, demand for AI chips will outstrip supply through 2025, indicating a sustainable growth trajectory for AMD's key business segments.
For Q3 2024, AMD forecasts revenue of 6.7 billion USD, which aligns with LSEG analysts' average estimate of 6.61 billion USD. This projection is supported by the recovery of the PC market, which is experiencing a resurgence after a significant downturn. Integrating new artificial intelligence features is expected to boost consumer demand further.
In the data centre segment, AMD's largest division, revenue in Q2 rose 115% to 2.8 billion USD, exceeding expectations of 2.79 billion USD. Notably, quarterly revenue from artificial intelligence chips in this segment surpassed the 1 billion USD mark for the first time. Overall, AMD's revenue in the second quarter grew by 9% to 5.8 billion USD, exceeding the forecasted 5.72 billion USD.
Technical analysis of Advanced Micro Devices (NASDAQ: AMD)
Exploring potential trading opportunities based on AMD's stock performance:
Investors and traders should keep a close eye on AMD, especially as the company capitalises on the growing demand for artificial intelligence chips and benefits from the recovery of the PC market. AMD's strategic focus on artificial intelligence and data centres sets it apart from its competitors, which may further boost the stock.
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Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
For Q3 2024, AMD forecasts revenue of 6.7 billion USD, which aligns with LSEG analysts' average estimate of 6.61 billion USD. This projection is supported by the recovery of the PC market, which is experiencing a resurgence after a significant downturn. Integrating new artificial intelligence features is expected to boost consumer demand further.
In the data centre segment, AMD's largest division, revenue in Q2 rose 115% to 2.8 billion USD, exceeding expectations of 2.79 billion USD. Notably, quarterly revenue from artificial intelligence chips in this segment surpassed the 1 billion USD mark for the first time. Overall, AMD's revenue in the second quarter grew by 9% to 5.8 billion USD, exceeding the forecasted 5.72 billion USD.
Technical analysis of Advanced Micro Devices (NASDAQ: AMD)
Exploring potential trading opportunities based on AMD's stock performance:
- Timeframe: Daily (D1)
- Current trend: the stock is in a downtrend, but recent strong earnings and positive forecasts may catalyse a shift to an uptrend
- Resistance level: 153.60 USD
- Support level: previously at 138.60 USD, which has now been breached
- Potential downtrend target: if the downtrend persists, the downside target could be at 117.50 USD
- Short-term target: if the trend reverses and the stock returns above the previous support level, a short-term target could be 174.60 USD
- Medium-term target: with sustained positive momentum, the stock price might aim for 188.50 USD
Investors and traders should keep a close eye on AMD, especially as the company capitalises on the growing demand for artificial intelligence chips and benefits from the recovery of the PC market. AMD's strategic focus on artificial intelligence and data centres sets it apart from its competitors, which may further boost the stock.
—
Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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