Here come AMD earnings… – Business Insider

Technicians
of AMD, the world’s second-largest maker of computer
microprocessors after Intel Corp, display wafers for the media in
the eastern German city of Dresden.
Reuters/Arnd Wiegmann

AMD
(Advanced Micro Devices) is set to report its second-quarter
results after Wednesday’s closing bell, with Wall Street analysts
surveyed by Bloomberg expecting adjusted earnings of $0.13 a
share on revenue of $1.72 billion.

Semiconductor makers, including both AMD and its competitor
Nvidia,
got an unexpected bump from the cryptocurrency craze of early
2017. However, as prices and interest have waned — bitcoin is
down 39% since January 1 — so too has the interest in graphics
cards from would-be crypto miners.

Luckily, sales of AMD’s newest Ryzen processor should fill any
gap, Credit Suisse told clients ahead of the earnings report.

“While crypto at roughly 15% of revenue continues to be a
headwind to 2H estimates, incremental growth from Ryzen channel
fill and share gains in GPU at AAPL and INTC should protect 2H
estimates from downward revision,” John Pitzer, the bank’s head
of technology research, said in a note to clients this week.

“While there are several moving pieces and still a large degree
of uncertainty – the current level of GPU-mining demand is most
likely unsustainable, and could present a material headwind to
C2H18 as AMD sees a meaningful reduction to our estimated ~$460
million of calendar year 2018 crypto-related revenue.”

Pitzer has a $13.50 price target for the stock.

AMD was gaining popularity among younger investors on the stock
trading app Robinhood ahead of the earnings report. 128,604
investors held the stock, according to numbers on the brokerage’s
website, up from 125,648 a week ago — an increase of roughly
3,000, making it one of the most popular stocks on the
platform. 

AMD shares are up 57% this year.

Check back here after markets close for the full earnings
report.

Get the latest Nvidia stock price here >>