AMD may see upside from AI sales as semi earnings likely to be 'muted': Citi
Jan. 21, 2025 8:54 AM ET
By: Chris Ciaccia, SA News Editor
 JHVEPhoto
- The overall theme from semiconductor companies quarterly results is likely to be a "muted" response, investment firm Citi said, even if there are some bright spots.
- "We expect aggregate Consensus estimates to decline during 4Q24 earnings season, driven by lower estimates from Analog companies and sluggish demand from the PC, Automotive, and Industrial end markets (combined 45% of semi demand)," Citi analyst Christopher Danely wrote in a note to clients.
- On the positive front, Danely is expecting demand from data center, AI and communication end markets (which make up around 30% of demand) to be "solid," while there should be inventory replenishment on the analog side, given the near 30% drop in sales.
- On the flip side, PC demand is likely to remain "sluggish," which could hurt AMD (NASDAQ: AMD) and Intel ( INTC), while the handset market is likely to be "okay," Danely added.
- Even though AMD could be negatively impacted from a weak PC market, Danely said the Dr. Lisa Su-led company could see upside from artificial intelligence-related revenue when it reports quarterly results early next month. A consensus of analysts expect AMD to earn $1.09 per share on $7.53B in revenue.
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