Will AMD Stock Climb on Strong Data Center Revenues in Q4 Earnings?

Advanced Micro Devices AMD is expected to have benefited from strong Data Center revenues in the fourth quarter of 2024, set to be released on Feb. 4.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.AMD benefits from a robust product portfolio and expanding partner base. It continues to strengthen its footprint in the enterprise data center arena by leveraging the power of fourth-generation EPYC CPUs. AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. The company’s expanding portfolio, which includes Instinct MI300X Series data center AI accelerators and the Versal RF Series Adaptive SoCs, has been noteworthy. Partners like Dell Technologies, HPE, Lenovo and Supermicro all have the Instinct platforms in production.The Zacks Consensus Estimate for Data Center revenues is pegged at $4.1 billion, indicating an impressive year-over-year increase of 79.71%.Advanced Micro Devices, Inc. Revenue (TTM) Advanced Micro Devices, Inc. revenue-ttm | Advanced Micro Devices, Inc. QuoteClick here to know how AMD’s overall fourth-quarter performance is likely to be.Expanding Portfolio to Aid AMD’s Client Revenues in Q4AMD’s expanding portfolio has been a key catalyst in driving the Client segment revenues.The company has expanded its desktop portfolio with the introduction of the new Ryzen 7 9800X3D, with its “Zen 5” architecture and 2nd Gen AMD 3D V-Cache technology.AMD’s Ryzen AI 300 Series, with 50 tops of AI compute performance for Copilot Plus PCs, is the industry’s fastest NPU.The consensus mark for fourth-quarter 2024 Client revenues is pegged at $1.97 billion, suggesting 35.04% year-over-year growth.AMD’s Gaming & Embedded Segments to Decline Y/YAMD’s Gaming segment is expected to have declined in the fourth quarter of 2024. Semi-custom sales are expected to fall as major partners continue to reduce channel inventory. AMD is also transitioning to its next-gen Radeon GPUs based on its RDNA architecture. This is also expected to have reduced revenues on a year-over-year basis.The consensus mark for fourth-quarter Gaming revenues is pegged at $509 million, suggesting a massive 62.79% year-over-year decline.AMD’s Embedded segment is expected to have suffered from ongoing softness in the industrial market. The consensus mark for fourth-quarter Embedded revenues is pegged at $922 million, indicating a 12.77% decline on a year-over-year basis.What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.Advanced Micro Devices currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Akamai Technologies AKAM has an Earnings ESP of +0.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Akamai Technologies’ shares have lost 18.2% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.AMETEK AME has an Earnings ESP of +0.54% and a Zacks Rank of 2 at present.AMETEK shares have gained 12.1% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.DoorDash DASH has an Earnings ESP of +35.67% and a Zacks Rank of 2 at present.DoorDash shares have surged 75.8% in the trailing 12 months. DASH is set to report its fourth-quarter 2024 results on Feb. 11.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report AMETEK, Inc. (AME): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks