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Advanced Micro Devices: What Wall Street Thinks Ahead of Earnings

Advanced Micro Devices is the subject of a number of bullish notes ahead of earnings from the chipmaker.
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Advanced Micro Devices  (AMD) - Get Advanced Micro Devices Inc. Report was rising Monday as the company was the subject of multiple notes from Wall Street firms ahead of earnings from the chipmaker on Tuesday.

Wall Street expects AMD to post quarterly earnings of 47 cents a share on revenue of $3.02 billion.  

Here are two examples of Wall Street is saying about the company. 

RBC Capital (Outperform rating maintained, PT raised to $105 from $100)

Heading into the Dec-qtr print, we remain positive on AMD and wouldn't be surprised to see a beat and raise quarter with potential f or the firm to generate revenues at or above the high-end. At this time we note the following: 1) revenue has high potential for upside due to PC demand, GPU demand and improving server trends, 2) we do not think gross margins begin to beat until Q1/Q2, with multiple new products - servers, GPUs and consoles, it is unlikely that yields are high on the initial batch of chips (standard lower yields on initial production).

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TheStreet Recommends

- Mitch Steves

Morgan Stanley (no rating, PT)

For December, key products including graphics and consoles are constrained by tight supply, with strong demand in all categories. All new graphics products - 6800, 6800 xt, and 6900 xt - are sold out at retail. While this is partly a function of foundry constraints, it is indicative of strong demand from both gamers and to a smaller degree cryptocurrency miners, and likely upside for AMD. New consoles, both Playstation and Xbox, are similarly sold out, reportedly constrained by (among other things), AMD chips. And even the newer Ryzen 5000 desktops are also in shortage, though this is more expected in the early stages.

- Joseph Moore

AMD shares were rising 2.1% to $94.75 in trading Monday. 

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