Big Tech will be taking over the earnings confessional over the next couple of days, with chip names among those reporting.
AMD reported decent Q3 results, surpassing expectations on revenue, with significant growth in the Data Center segment. The company only matched bottom line estimates, and current quarter guidance was a tad light. The nearly 8% post-earnings pullback makes the valuation look a little more attractive.
Tech stocks to watch going into November 2024.
On October 29, Advanced Micro Devices (NASDAQ: AMD) held its Q3 2024 earnings call. Earnings per share (EPS) came in exactly on par with consensus estimates, at $0.92, for a pretty compelling 38% increase year-over-year (YoY).
As slow as it is to build, Advanced Micro Devices NASDAQ: AMD is gaining momentum with AI and is well-positioned for long-term market share gains. The primary hurdle is its AI ecosystem, which lags behind NVIDIA's NASDAQ: NVDA development, but the ecosystem is improving quarterly, aided by internal advances and acquisitions.
Alphabet (GOOGL) is up thanks to an earnings beat and strong cloud growth. Cory Johnson says its "hard to imagine" Alphabet growing at its scale but makes the case for the Mag 7 giant.
The stock market is giving Big Tech tougher demands for its continued support.
This year has certainly been the year of the chip stock. Semiconductor makers AMD (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM), as well as industry leaders Nvidia (NASDAQ:NVDA) and former leader Intel (NASDAQ:INTC) continue to inspire plenty of discussion among investors in terms of which company will come out ahead.
U.S. stock futures were mixed this morning, with the Dow futures falling around 50 points on Wednesday.
One analyst says that AMD's muted guidance is unlike what Wall Street has come to expect of “AI names.”
The company is still struggling to live up to its tag as the market's second-favorite AI chip stock.
The chipmaker's data center revenue soared 122% year over year, driven by continued powerful demand for its artificial intelligence (AI) chips that compete with larger rival Nvidia's chips.