Latest news with #KCRajkumar
Yahoo
15 hours ago
- Business
- Yahoo
AMD Joins Chipmakers Struggling to Impress Traders With Upbeat Earnings
You'd have a chip on your shoulder, too. Santa Clara-based chipmaker Advanced Micro Devices reported a record $7.7 billion in second-quarter revenue after the bell Tuesday, a 32% year-over-year increase that bested analysts' expectations. The company also projected third-quarter sales of $8.7 billion, topping Wall Street estimates of $8.3 billion. Earnings of 48 cents per share narrowly bested the 47-cent estimate of analysts surveyed by Zacks Investment Research. Yet the stock fell 5% in after-hours trading in what's becoming a rite of chipmaker reporting days, when good is seen as not good enough. READ ALSO: Apple Adds $100 Billion to American Investment Plans and Disney Growth Shows Americans Willing to Splurge Despite Gloomy Economic Signals Promise and Doubt AMD entered Tuesday saddled with the expectations of a top draft pick (best of luck, Cam Ward). Analysts forecasted second-quarter revenue of $7.4 billion, or a 27% year-over-year increase, according to estimates compiled by S&P Global's Visible Alpha. That would have matched the company's first-quarter revenue, which represented a 36% increase as chipmakers have benefited from AI and tech giants like OpenAI, Meta and Microsoft announcing hundreds of billions in spending that will include increasing computing power. The real hype around AMD has been its share price: Up 45% in 2025, the chipmaker's stock is the sector's top performer. Yep, that's better than even Nvidia, the $4.3 trillion advanced semiconductor maker that is the world's most valuable company; it has gained a comparatively puny 33% so far this year. But, according to John Peddie Research, mighty Nvidia captured a 92% share of the market for add-in board graphics processing units in the first quarter, up from 88% a year earlier. AMD, by comparison, lost market share, falling to 8% in the first quarter from 12% a year earlier. Lynx Equity Strategies cautioned in a note before Tuesday's earnings that investors may be too optimistic about the role AMD's MI350/MI355 and upcoming MI400X GPUs will play in massive chip upscaling at Meta and possibly Amazon Web Services (AWS). 'We doubt if AMD has bagged share at AWS,' wrote Lynx's KC Rajkumar, and 'without AWS, AMD may be dependent on one key backer — Meta.' There's still plenty of upside in the sector; it's just unclear that AMD will capture it: The Philadelphia Stock Exchange Semiconductor Index is up 10.6% this year, slightly better than the Nasdaq's 8.3% advance. Optimism has been fueled in recent weeks by some $340 billion in capital spending plans for this year laid out by Alphabet, Amazon, Meta and Microsoft, with much of that expected to include chip-buying. But Lynx's KC Rajkumar warned that 'investors are yet to see tangible signs of MI350/MI355 adoption at hyperscale data centers this year.' Falling profits due to more stringent curbs on chip exports and trade uncertainty also hang over earnings. Not Good Enough: It's not just AMD. Investors have generally been hard to please for most chipmakers. Shares in UK chipmaker Arm have fallen roughly 15% since last Wednesday, even as it offered a third-quarter forecast in line with analysts' estimates. Shares in Qualcomm, which beat analysts' sales and profit estimates and offered a rosy forecast when it reported a day later, have since fallen 8%, with investors more worried about its exposure to the cyclical smartphone market and the forthcoming loss of Apple as its biggest modem customer. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
3 days ago
- Business
- Yahoo
Top Analyst Warn AMD AI Hype May Outpace Reality
Aug 5 - Advanced Micro Devices (NASDAQ:AMD) is riding an 80% rally over the past three months, but Lynx Equity Strategies thinks the stock may be moving too fast for its fundamentals to keep up. Analyst KC Rajkumar raised concerns in a recent note, cautioning that AMD's rise largely rests on high expectations surrounding its MI350/MI355 GPUs and the upcoming MI400X. Warning! GuruFocus has detected 6 Warning Signs with AMD. According to Rajkumar, many investors assume AMD has won key design wins with hyperscalers like Meta Platforms (NASDAQ:META) and Amazon Web Services, but he questions whether AWS has truly adopted AMD's chips. Without AWS, AMD could be leaning too heavily on Meta, he warned. Lynx isn't convinced about the near-term adoption of AMD's GPUs in data centers, despite some analysts forecasting over 30% revenue growth in 2025. The firm also doubts whether AMD's resumed MI308 shipments to China will deliver much upside, considering Beijing's restrictions on chip imports, already affecting Nvidia (NASDAQ:NVDA). Rajkumar sees downside risk, suggesting a $150 price target if consensus EPS for 2026 lands around $6. He believes AMD may have priced in years of growth that haven't materialized yet. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Tech analyst warns AMD stock has run ahead of itself as company prepares to report
-- Lynx Equity Strategies issued a cautious note on AMD (NASDAQ:AMD) ahead of its earnings release, warning that the stock's sharp rally may be outpacing the company's fundamentals. 'AMD's ~80% rise over 3 months has several assumptions built into it,' wrote KC Rajkumar of Lynx Equity Strategies. Chief among them is said to be the belief that AMD's MI350/MI355 and upcoming MI400X GPUs have secured broad adoption from hyperscalers like Meta (NASDAQ:META) and potentially AWS. But according to Rajkumar, 'we doubt if AMD has bagged share at AWS… Without AWS, AMD may be dependent on one key backer – META.' While some analysts are forecasting over 30% revenue growth in calendar 2025, Lynx warned that 'investors are yet to see tangible signs of MI350/MI355 adoption at hyperscale data centers this year.' The firm stated that expectations AMD will grow earnings per share to $7.50–$8.00 by 2027 and justify $200 price targets are based on 'hype built into Street expectations.' Lynx also questioned the significance of AMD resuming shipments of its MI308 chip to China, noting that China's internet regulator may apply the same import restrictions to AMD as it has to Nvidia (NASDAQ:NVDA). The firm's valuation analysis implies downside risk. 'Based on 25x multiple over Cy26 consensus EPS of ~$6, we think the stock is likely to test the $150 price level,' the note said. Rajkumar concluded: 'We think the stock has discounted multiple years of strong revenue growth and may have run ahead of itself.' Related articles Tech analyst warns AMD stock has run ahead of itself as company prepares to report Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names 7 Undervalued Stocks on the Rise With 50%+ Upside Potential
