- AMD’s Q3 earnings report on October 29th is crucial, especially after ASML’s disappointing results, which impacted the semiconductor market.
- Despite ASML’s challenges, AMD’s role as a chip designer and its diversified revenue base set it apart, suggesting different growth prospects.
- AMD is expected to show healthy growth with EPS up 30% YoY and revenues up 15.72% YoY, making it a potentially attractive buy.
- AMD remains well-priced with strong growth prospects, making it a good long-term hold despite recent market volatility and ASML’s issues.
- This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More »
Thesis Summary
Advanced Micro Devices (NASDAQ:AMD) is set to report Q3 earnings on October 29th and this is going to be a very important release.
Just last week, ASML Holding (ASML) released its earnings and investors were not pleased. The stock tanked over 10% and dragged the semiconductor market with it.
With AMD reporting soon, we may get the answer to many of the pressing questions the ASML debacle has raised.
- Is the AI mania over?
- Is ASML an exception, or the canary in the mine?
- Will AMD’s results help turn the stock around?
In my opinion, AMD is one of the few companies that can realistically take market share from NVIDIA (NVDA).
Though ASML is also in the semiconductor industry, it plays a very different role from AMD, and their poor guidance may not actually be reflective of the broader demand for chips.
In my last article on AMD, I highlighted the stock was cheap for an AI company, and that continues to be the case today as the price has not moved much. The doubt cast by ASML gives us a chance to pick up more stock at a discount.
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