BUZZ-PREVIEW: AMD jumps as investors eye AI chip demand
AMD•AMD•AMD•AMD•AMD shares were surging 8.99% to $527.79 on Tuesday ahead of quarterly results after the bell, with focus on its AI chip business amid intense competition with Nvidia.
The semiconductor designer is expected to report a roughly 47% rise in quarterly revenue to $11.28 billion and adjusted EPS of $1.62 versus $0.48 a year ago, according to LSEG.
The stock has surged about 146% year to date versus the Nasdaq's roughly 14% gain; it recently traded at 41 times forward earnings, above its 31 times five-year average.
In May, the company forecast second-quarter revenue above estimates on strong AI chip demand, but warned of a second-half decline in its gaming and PC businesses.
AMD in July announced a multi-billion dollar deal to supply AI servers to startup Anthropic, deepening its push into the AI chip market dominated by Nvidia.
The average rating of 54 analysts on the stock is "buy", with 45 "buy" or "strong buy" ratings and nine "hold" ratings.
