Advanced Micro Devices, Inc. reported better-than-anticipated Q3:16 results, driven by the strength of its gaming business, as well as the recent success of Polaris in the GPU market.
In 2017, AMD will launch some new exciting products in a seasonal pause in December/March which should support AMD.
With the launch of Summit Ridge, slated for Q1:17, the analyst believes that the company would have an opportunity to once again deliver beat results, with the new product helping to offset a typically seasonally slow quarter.
In addition, Sepenzis believes that the Computer & Graphics business was well positioned to witness robust growth in CY17, on both the CPU and GPU fronts, and that AR/VR products would prove to be significant drivers of growth.
For Q3, Advanced Micro Devices reported its revenue at $1.3 billion, with non-GAAP EPS of $0.03, ahead of the estimates and the consensus. Gross margins were, however, in line with expectations at 31 percent
“The biggest changes during the quarter involved the balance sheet, with AMD raising $690 million in equity and $805 million in convertible debt which it has used to retire over $1 billion in combined debt and the ABL balance,” the analyst noted.
At last check, Advanced Micro Devices was down 4.89 percent at $6.62
Northland Capital’s Tom Sepenzis reiterated an Outperform rating on the company, with a price target of $8.50.