Bernstein's Stacy Rasgon: Here's what to expect for AMD earnings
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Yahoo
13 minutes ago
- Yahoo
AMD to report Q2 earnings as Wall Street looks to AI, PC sales growth
AMD (AMD) will report its second quarter results after the bell on Thursday, giving Wall Street a better understanding of the AI chip market ahead of rival Nvidia's (NVDA) report later this month. The company stands to benefit from the resumption of its chip sales in China after the Trump administration briefly banned them in April, as well as the potential for pull-forward in CPU sales as manufacturers built up inventory to fend off the impact of tariffs on PC sales. AMD shares are up 47% year to date and 34% over the last 12 months, while Nvidia shares are up 33% and 66%, respectively. For the quarter, AMD is expected to see adjusted earnings per share (EPS) of $0.49 on revenue of $7.4 billion, according to Bloomberg consensus estimates. That would represent a 29% decline in EPS but a 27% jump in revenue. Part of the reason for that is that AMD is expected to take a $700 million hit from the Trump administration's ban on the sale of the company's MI308 AI chips for China. That's far lower than the $4.5 billion write-down Nvidia took in Q1 and the $8 billion it said it would take in Q2 due to the impact of the ban on its own China-specific chip. Trump reversed course on the ban last month, which should help make up for some of those losses in the coming quarters. AMD should also benefit from the launch of its MI350 line of AI chips, designed to go toe-to-toe with Nvidia's Blackwell-powered chips. According to AMD, the MI350 line, which includes the MI350X and MI355X, offers four times the AI compute performance and a 35x increase in inferencing capabilities versus its predecessors. 'We expect AMD to post higher results and higher guidance, as we see improving traditional server demand and latest generation share gains, as well as strong demand for MI355,' KeyBanc Capital Markets analyst John Vinh wrote in an investor note ahead of the company's earnings. AMD's Data Center segment is expected to bring in $3.2 billion in the quarter, up 14% year over year from Q2 2024 when the business generated $2.8 billion. Beyond the Data Center segment, AMD's Client business, which includes sales of CPUs for desktops and laptops, is expected to see $2.5 billion. That's a massive 71% jump versus the $1.4 billion it brought in during the same quarter last year. That anticipated increase is thanks to the anticipated pull-forward in laptop and desktop shipments to combat the Trump administration's tariffs. But it will also hurt sales in the back half of the year. 'Similar to [Intel], we expect AMD Client to benefit from tariff-related pull-in of demand in Q2, and that same benefit to likely reverse in 2H, leading to below-seasonal Q3/Q4,' BofA Global Research analyst Vivek Arya wrote in an investor note. 'For [Intel], new Street estimates for [Client Computer Group] now point to +4%/+2% [quarter-over-quarter growth] in Q3/Q4, below +7%/+4% prior to Q2 earnings and also below typical +9%/+4%,' Arya added. 'However, for AMD, we highlight Street estimates already embed the demand normalization, with Client estimates of +2%/+0% in Q3/Q4 well below typical +15%/+14%.' Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
Nvidia Stock Climb Ahead of AI Earnings Wave as Vast Data Deal Brews
Aug 4 - Nvidia (NASDAQ:NVDA) stock climbed 2% on Monday morning to $177, bouncing back after last week's dip tied to disappointing jobs data. The broader market rose too, offering support to AI-related names. However, with most major tech companies having already reported earnings, investors now await Nvidia's own update on August 27 for more direction on the AI trade. Warning! GuruFocus has detected 5 Warning Signs with NVDA. In the meantime, attention shifts to upcoming earnings from Advanced Micro Devices (NASDAQ:AMD) and Super Micro Computer (NASDAQ:SMCI), due Tuesday. Their reports may offer a glimpse into ongoing demand for AI processors, something Nvidia leads in. Nvidia's chips remain the top pick for training AI models. Beyond earnings, Nvidia appears to be putting capital to work. According to a Reuters report, the company is in talks to invest in AI storage specialist Vast Data, a deal that could value the startup at up to $30 billion. Vast Data supports AI data centers by enabling efficient movement of data across processors, an area that aligns well with Nvidia's infrastructure goals. Broadcom (NASDAQ:AVGO) also saw gains of 1.2% in premarket trading, while AMD rose 2%, suggesting investor confidence in the AI supply chain remains strong. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
15 minutes ago
- CNBC
27-year-old first-grade teacher lived paycheck to paycheck due to impulsive spending: ‘It became so stressful'
Maddie Baker, 27, will be the first to admit she was an impulsive spender when she started teaching kindergarteners six years ago. She bought coffee at least once a day, frequently shopped for new clothes and spent lavishly on vacations she says she "probably had no business going on." "Any day that I had a hard day at teaching, I would immediately go from my job to a store," the now first-grade teacher tells CNBC Make It. "The way I was coping with hard days was by spending money." Baker isn't alone. Almost half of American consumers say they make purchases to boost their mood, according to LendingTree survey data released in July. Emotional spending isn't always bad, either. It can provide temporary comfort or a needed mood boost. However, it can also lead to financial strain. Baker says her impulsive spending got so out of hand, she found herself in "horrible cycles" of living paycheck to paycheck to avoid going into credit card debt. Nationally, almost three-quarters of emotional shoppers admit they've spent more than they intended, and 44% say it's negatively impacted their financial well-being, LendingTree found. It took Baker three years to get her spending under control, she says. Today, she's very intentional with how she spends her money and has even developed new hobbies from habits she's built to save money. "I remember just waking up every single day, and the stress of finances was just really getting me down," says Baker, who was making around $50,000 a year at the time. "It became so stressful." Nearly Baker's entire paycheck would go directly toward paying off her credit card. Because she was paid once a month, that often left her with little to live on — forcing her to rely on the card for new expenses and trapping her in a constant cycle of borrowing from herself. She tried everything to earn extra cash. She tutored kids during her summer breaks, tried selling her clothes and donating her plasma, but none of it seemed to sustain her lifestyle, she says. Baker got her spending under control three years into teaching through a tax refund that allowed her to pay off her credit card bill without using her paycheck. Now, she keeps enough in her checking account to pay her credit card bill every month without having to rely on an incoming paycheck. "It took a total restart and being tired of the cycle I was in, in order to do something about it," she says. Young adults are particularly susceptible to overspending when they're online or bombarded with bad news, Ylva Baeckström, a senior lecturer in finance at King's Business School, said in 2024. Overwhelming feelings can lead to unhealthy spending habits as a way to cope or find relief, Baeckström said. To avoid overspending, "one of the biggest things you can do is take a beat," Keith Barron, a personal finance expert and former head of marketing at Jenius Bank, said in 2024. Rather than heading straight to checkout when shopping online, try adding the item to a wish list and waiting a day or two. This brief delay can help you decide whether you genuinely want or need the item, Barron said. Today, Baker is working toward building an emergency fund and saving for a house, and says she's way more intentional about what she decides to spend money on. On top of learning how to spend less impulsively, she says she's found alternatives to save money and a side hustle creating videos on TikTok to bring in more income. Her silver lining: Many of the activities that started as a way to save have become hobbies as well. She enjoys painting her own nails, making lattes at home and meal prepping to avoid eating out. On TikTok, she earns up to $2,000 a month from sharing videos about her life as a teacher. "All of these things happened because I had the mindset of, 'I need to save more money, and I need to spend less money,'" she says.
