AMD still off sharply as downgrades arrive; Nvidia also lower


In addition to offering soft Q3 guidance, AMD (AMD -17.5%) stated on its CC (transcript) its expects Q3 to be this year's "peak quarter" for console APU shipments.

FBR, which has cut shares to Market Perform, calls this "most surprising," given console APU shipments rose sharply in Q4 last year (as the Xbox One/PS4 launched).

It thinks AMD might benefit down the line from a design win for Nintendo's next-gen 3DS, but only sees this boosting EPS by $0.04. The firm is also concerned inventory rose 10% Q/Q to a new all-time high.

When pressed in the Q&A about what his console remarks imply for Q4 sales, CEO Rory Read declined to offer a forecast. He did, however, state PC-related sales are expected to rise in Q4 (in-line with normal seasonality).

BofA/Merrill, which has cut shares to Underperform, argues AMD's PC CPU/GPU ops (have seen share losses to Intel/Nvidia) remain "a material headwind." The firms adds light exposure to enterprise PCs (outperforming in 2014) and certain low-end PC segments seeing strong growth (such as Chromebooks) are also issues.

Raymond James is still bullish: Though thinking management should've communicated console trends better, it believes AMD continues to execute well, and suspects there's an "element of prudence" to Microsoft/Sony's build activity.

Nvidia (NVDA -3.9%) is off in sympathy. Read stated on the CC AMD saw a decline in high-end GPU shipments to graphics card channels - Digitimes previously reported something similar - as demand from cryptocurrency miners abated." Shipments are expected to rise in Q3.

From other sites
Comments (2)
  • gofx
    , contributor
    Comments (1903) | Send Message
     
    Seriously, people are concerned about when console sales peak?

     

    They can't imagine that during a launch year when new countries are being added and that demand is outstripping supply that console sales would have an abnormal peak?

     

    When holiday support shipments peak is simply a matter of market timing mechanics. That should not be an issue unless the thought is that console sales are dying off.
    19 Jul 2014, 07:41 AM Reply Like
  • glssmrbl
    , contributor
    Comments (1246) | Send Message
     
    where are all the AMD bulls? Not saying I'm a bear but....
    20 Jul 2014, 12:59 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs