Advanced Micro Devices AMD is set to report fourth-quarter 2017 results on Jan 30. The company is expected to gain from robust demand of graphic processor unit (GPU), which is now profusely used in industries like gaming, automotive and blockchain.
Increasing adoption of Artificial Intelligence (AI) techniques and machine learning tools in these industries are primarily responsible for driving GPU demand. AMD along with NVIDIA NVDA is benefiting from this demand.
Moreover, GPUs have been in strong demand owing to increasing mining of cryptocurrencies, like Bitcoin and Ethereum. AMD, on the back of robust GPU product portfolio, has been benefiting from this trend.
These factors drove third-quarter 2017 results. The company achieved record GPU revenues on the back of improved average selling price (ASP) and higher unit shipments compared with the year-ago quarter.
AMD reports GPU sales under Computing and Graphics segment, which delivered revenues of $890 million, up 74% from the year-ago quarter. Moreover, improving mix of the higher margin GPUs also drove gross margin.
Advanced Micro Devices, Inc. Revenue (TTM)
The strong top-line growth was driven by rapid adoption of AMD’s GPUs by the likes of Amazon AMZN and Baidu BIDU. Amazon used Radeon Pro technology to power Amazon AppStream 2.0, while Baidu deployed Radeon Instinct GPUs in its datacenters.
Rapid adoption of Vega-based GPUs, Radeon E9170 Series GPUs and Polaris products are likely to boost the top-line growth in the to-be-reported quarter.
The Zacks Consensus Estimate for Computing and Graphics segment revenue is currently pegged at $839 million for the fourth-quarter.
AMD has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Want 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
Be the first to comment