Advanced Micro (AMD) is set to report Q2 results today after the close, and has a call at 5:00pm ET.
The current S&P CapitalIQ consensus is for EPS growth of 200% yr/yr to $0.54 and revenue growth of 87% yr/yr to $3.61 bln.
AMD also typically guides on revenue for the next quarter and full year.
Double-digit revenue growth has been typical for AMD the last five years. For Q2, AMD will be lapping its smallest revenue growth of last year at just 26.1%. Given the supply constraints and that demand for chips has not cooled off, AMD shouldn't have much trouble getting to the consensus growth figure for Q2.
Despite supply constraint issues, AMD still doubled its gaming revenue over two years as of Q1. Also, the sustained demand is giving AMD a robust backlog which should continue to boost sales into 2022.
TECHS:
After AMD’s stock doubled in 2020, it is down slightly YTD in 2021.
In 2020, P/E was hitting over 200x. This year, P/E ratios hover around 38x.
INTC, which is still stuck in its older nanometer process, is trading at a P/E ratio of 11.7x, and Nvidia (NVDA) is trading at nearly 90x.
This puts AMD at a nice valuation heading into Q2 earnings with many catalysts on the horizon.
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