AMD Q3 Earnings Preview: Can AI, Server Gains Help Narrow The Semiconductor Gap With Nvidia?

Advanced Micro Devices Inc. (NASDAQ:AMD) is set to report third-quarter 2024 earnings on Tuesday, Oct. 29, after the market close.

The third-largest U.S. semiconductor company by market capitalization—behind Nvidia Corp. (NASDAQ:NVDA) and Broadcom Inc. (NASDAQ:AVGO)—has significantly lagged behind its industry peers year to date.

Will AMD’s third-quarter earnings signal an inflection point, setting the stage for a comeback, or will the performance gap with top competitors continue to widen from here?

Chart: AMD Has Sharply Underperformed Nvidia Year To Date

Wall Street Expectations For AMD Earnings, Revenue In Q3 2024

Wall Street anticipates AMD to report adjusted earnings per share (EPS) of 92 cents for the third quarter of 2024, reflecting a robust 31% increase from 70 cents in the same quarter last year, as per Benzinga Pro data.

GAAP revenue is projected to reach $6.71 billion, a 16% year-over-year increase from $5.8 billion in the third quarter of 2023.

A Positive Track Records Of Earnings Beats, Yet With Mixed Stock Reactions

Over the last eight quarters, AMD has consistently, yet marginally, beaten EPS expectations in seven out of eight reports, with the only miss occurring in the third quarter of 2022 (-1.47%).

Revenue has also largely exceeded expectations, with positive surprises in seven quarters, ...