It’s been easy to overlook Advanced Micro Devices (AMD:NASDAQ) as Nvidia (NVDA:NASDAQ) cornered the market for AI microchips last year. Yet analysts are increasingly seeing scope for AMD to emerge as a second AI chip champion as computer processing power demands surge.

Microsoft (MSFT:NASDAQ) is incorporating AMD’s AI chips into its Windows PC operating system as part of a multi-year partnership, for instance, and it is not alone. Facebook parent Meta Platforms (META:NASDAQ) has been eying AMD’s AI processors as a lower-cost alternative to those provided by industry leader Nvidia.

AMD stock has already doubled since October 2023, and has tripled over the past 15 months, with January strength powered by multiple analyst forecast and target price upgrades from the likes of Barclays, KeyBanc Capital Markets and Susquehanna Financial.

Fourth-quarter 2023 earnings after the market closes on 30 January will test whether the stock’s run is sustainable. Analysts forecast around 15% earnings growth on last year’s Q4 $0.67 marker at $0.77, on only its second quarter ever of $6 billion-plus revenue ($6.13 billion is the forecast).

Analysts estimate 18% earnings growth through 2024, based on Koyfin’s latest data.

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

26 January: Caterpillar, American Express, Colgate-Palmolive, Norfolk Southern

29 January: Graco, Franklin Resources, Woodward, Rambus, Crane, Whirlpool

30 January: Microsoft, Alphabet, Advanced Micro Devices, Danaher, Pfizer, UPS, Stryker, Chubb, General Motors, Harley Davidson, Pitney Bowes 

31 January: Mastercard, Boeing, Boston Scientific, MetLife

1 February: Apple, Amazon.com, Merck & Co, Honeywell, Eaton, Microgen, Royal Caribbean Cruises, Pinterest, Hartford, Spire

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