After Intel (INTC) and Qualcomm (QCOM) reported disappointing earnings, semiconductor company Advanced Micro Devices (AMD) is expected to report its results later today.
The company is expected to report a rise in revenue and net profits in the second quarter as shipments improve with easing of supply-chain bottlenecks and sustained demand for chips. The consensus estimate is for AMD’s per share earnings to come in at $1.04, while revenues are expected to rise to $6.5 billion—up nearly 70% from a year ago.
Analysts will be looking for commentary on demand amid a slowdown in the PC and smartphone markets. Qualcomm had given a lackluster forecast for the current period, saying that a weakening economy will hurt consumer spending on mobile devices. Intel reported second quarter results that fell far short of analyst estimates. The company said its data center chip business would grow slower than the overall data center market for the next two years.
However, AMD's management in June issued a strong sales forecast for the second quarter, indicating the company continues to make strides in its most lucrative market, data center processors.
AMD shares are up 25% over the last month, but are down over 35% for the year.
"Semiconductors have become the de-facto transport stocks of the 21st century, and are a strong indicator of global growth. The mixed results we are seeing from chip companies paints a pretty accurate picture of the slowdowns occurring across all developed markets," said Caleb Silver, Editor-in-Chief of Investopedia.