TECH - Nvidia AMD To Triumph Over Q4 Market Weakness With Cutting-Edge AI Says Analyst: Here's What To Expect From The Chipmakers | Benzinga
Artificial intelligence could have saved the day of semiconductor companies in the fourth quarter, said an analyst at KeyBanc Capital Markets on Monday.
Weak Industry Fundamentals: Broad-based demand trends remain weak, weighed down by continued inventory destocking in the auto and industry end markets, said John Vinh in a note. Despite the bottoming of the PC industry, demand trends remained weak, he added.
The analyst also noted weakness in the traditional server market and Chinese iPhone demand. On the flipside, Android smartphone demand sustained and AI server demand remained robust, he said.
“We see AI and Android handset-exposed names as best positioned into earnings, while anticipating
moderate risk to analog names with outsized auto and industrial exposure,” said Vinh.
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Positive On AMD: Advanced Micro Devices, Inc. (NASDAQ:AMD) will likely post higher results and higher guidance, said Vinh. The analyst expects fourth-quarter revenue and earnings per share of $6.18 billion and 80 cents, respectively, compared to the consensus estimates of $6.12 billion and 77 cents.
The positive expectation is premised on strong server results amid improving Genoa demand, the analyst said. Genoa is AMD’s high-performance server processor based on the Zen ...