Semiconductor analysts are expressing concerns over the high expectations for AMD's data center unit. Investors will receive a crucial update on the chip maker's businesses after the market closes.
The Wall Street consensus predicts that Advanced Micro Devices (AMD) will announce a revenue of $5.7 billion for the September quarter, with adjusted earnings per share of 68 cents. Analysts have estimated that the current quarter's revenue will reach $6.4 billion, accompanied by an EPS of 89 cents.
Intel (INTC) recently reported its third-quarter financial results, surpassing Wall Street estimates. However, the company fell short on data-center revenue according to analysts' consensus.
Both AMD and Intel rely on the x86 chip architecture to manufacture processors for personal computers and servers.
Susquehanna analyst Christopher Rolland has reaffirmed his Positive rating on AMD but expressed caution regarding next year's forecasts.
The analysts pointed to feedback from customers, which indicated that sales of AMD's server chips may be negatively impacted by budget shifts at corporations prioritizing AI-related infrastructure purchases.
Over the past three months, AMD shares have experienced a 16% decrease in value. Similarly, the iShares Semiconductor ETF (SOXX), which tracks the performance of the ICE Semiconductor Index, has declined by 18% during the same period.