AMD expects in 3Q23, revenue and profits keep growing.

AMD is an American company. It is a manufacturer and developer of CPUs and various technologies. The main products of the company are Microprocessors, motherboards, and graphics cards for server computers and personal computers, with Market share ranking seventh in the Semiconductor category and a market cap of approximately $160 billion.

3Q23 revenue forecast is equal to $5,705 million +3%YoY, +6%QoQ and profit of $1,100 million +1%YoY, +16%QoQ. This is due to revenue from subscribers increasing to $1,233 million +21. %YoY It is also expected that the company will have depreciation and amortization expenses reduced to $515 million -56%YoY, supporting the net profit margin (NPM) to increase to 20%.

Most analysts expect operating results in 3Q23 to be similar to expectations, and in 4Q23 they are confident that data center ramp revenue will increase. In line with the increase in MI300 GPU revenue, we adjusted our next 12-month target estimate to $140, while the current P/E is 24 times, with the historical average P/E of 35 times.