Earnings season is here again, and it is time to take a look at how some of the major chip stocks may fare. Investors should remember that buying stocks ahead of earnings reports can lead to a lot of volatility in a portfolio, so proceed accordingly.
Advanced Micro Devices (NYSE:AMD)
Reporting date: October 14, 2010
Current average EPS estimate: 7 cents (25 est.)
Current average revenue estimate: $1.61 billion (27 est.)
Estimate trend: Down 7 cents per share (50%) from 30 days ago
Advanced Micro pre-announced its quarter (or rather, revised guidance) in late September, guiding revenue expectations to a drop of 1-4% on a sequential basis. Sales of PCs and notebook computers have been weak this quarter, and AMD does not appear to be gaining. Investors will of course be interested in hearing the company's commentary on near-term PC shipment trends, but even more attention may be put on the company's plans for the Llano chip.
The Llano is set to be the first mainstream fusion chip, with an expected release in the third quarter of 2011. This chip will combine the functions of a general microprocessor with a graphics processor and could theoretically be some threat to Nvidia (Nasdaq:NVDA).
Here's the full article:
http://stocks.investopedia.com/stock-analysis/2010/Looking-Ahead-To-Four-Chip-Stock-Earnings-Reports-AMD-INTC-LLTC-QCOM-NVDA1008.aspx
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