What To Expect From AMD’s Q2 Results?

Advanced Micro Devices stock (NASDAQ
NDAQ
: AMD) is expected to publish its Q2 FY’23 results on August 1 reporting on another quarter that saw declining PC sales and concerns about broader technology spending by large companies. We expect the company’s revenues to come in at about $4.8 billion, in line with consensus estimates although this would mark a year-over-year decline of about 26%. We project that earnings will come in at about $0.53 per share, slightly ahead of the consensus estimate and down by about 50% versus last year. See our dashboard AMD Earnings Preview for a closer look at what to expect when the company publishes results.

The broader PC market has faced headwinds over Q2 as demand for PCs cools post Covid-19. Counterpoint estimates that PC shipments fell by about 15% year-over-year in Q2 2023, although shipments did see a sequential improvement of 8% versus Q1. This could likely impact sales of AMD’s client computing segment. However, while PC vendors worked through chip inventory that they built up over last year in Q1, things could get better in Q2 as inventory levels likely come down. Things could be a bit more stable on the server front as AMD continues to gain share over rival Intel
INTC
, which has faced issues transitioning to smaller, more advanced process nodes. Moreover, AMD’s chips are also perceived to have a better price-to-performance ratio than Intel’s. However, overall we expect AMD’s CPU sales to see a meaningful decline over last year.