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In their note, analysts said the first-half choppiness sets the bottom for a second-half recovery.
On Tuesday, May 2, AMD will report its first-quarter earnings, and while Susquehanna is expecting “generally in-line 1Q results,” they are more uncertain on the guide, stating there is a modest risk.
“We hope AMD will guide the full year, with revenue coming in down slightly to $23.3B (chance of flat), GMs perhaps >50%, and opex ~27.5% (high 20s),” wrote analysts.
“The company remains optimistic on a 2H recovery, but so is the Street (expecting up +11.3% sequentially in 3Q and +7.2% in 4Q). Putting it all together, we believe March will mark the bottom for AMD, but note small risks for the 2Q guide.”
The analysts noted that “investors tend to buy the last cut,” so they expect a limited impact to the stock, adding that “weakness may present a good level to accumulate shares.”
