AMD Reports Earnings on Tuesday: 6 Key Things to Watch

As Intel  (INTC) – Get Report tumbles post-earnings for the second quarter in a row, AMD  (AMD) – Get Report is trading higher again, leaving shares up 78% on the year and 160% over the last 12 months.

It’s safe to say that markets are counting on the CPU and GPU developer to once more top estimates and issue strong guidance when it reports on Tuesday. Currently, the consensus among analysts polled by FactSet is for AMD to post Q3 revenue of $2.56 billion (up 42% annually) and non-GAAP EPS of $0.35.

AMD’s Q4 revenue consensus stands at $2.62 billion (implies 23% annual growth), and its full-year revenue consensus stands at $8.9 billion (up 32%). In July, the company guided for 32% 2020 revenue growth, up from a prior outlook for 20% to 30% growth.

I’ll be live-blogging AMD’s earnings report, which typically arrives 15 minutes after the market closes, along with an earnings call scheduled for 5 P.M. Eastern Time. Here are some things for investors to watch.

1. Server CPU Sales

With the help of strong demand from Internet/cloud giants (the proverbial hyperscalers), AMD’s Epyc server CPU revenue more than doubled annually in Q2, leading the company to declare that it hit its goal of obtaining a double-digit server CPU share.

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