Advanced Micro Devices shareholders are eagerly anticipating the semiconductor maker’s latest update on demand for its AI chips when it reports earnings on Tuesday.

The company will report fourth-quarter earnings after the market close. The Wall Street consensus estimate is for AMD to release revenue of $6.13 billion with adjusted earnings per share of 77 cents for the quarter ending December. Analysts estimate the current quarter’s revenue is $5.73 billion with EPS of 67 cents.

On Monday, Susquehanna analyst Christopher Rolland reaffirmed his Positive rating on AMD shares. He raised his price target to $210 from $170 but cautioned the chip maker must raise its AI forecasts for this year.

“We think the most important swing factor for investors is the narrative and update for MI300,” he wrote.

The MI300, a data-center GPU, is AMD’s offering for powering AI projects and AI applications. Three months ago, AMD CEO Lisa Su forecast that MI300 GPU revenue would surpass $2 billion in 2024.

“Expectations are high for an update on MI300 guidance, but can AMD meet/exceed them?” Rolland wrote.

Rolland said he believes investors, on average, expect AMD to generate $6 billion in data center GPU revenue this year and want AMD to raise guidance to at least $3 billion.

AMD shares are up 134% to $176.48 the past 12 months, compared with a 47% gain for the iShares Semiconductor sector exchange-traded fund.

By: DocMemory
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