Jan 30th, 2024 – On Tuesday, Advanced Micro Devices (AMD), one of the main chipmakers worldwide, disclosed 2024 Q1 revenue expectations way lower than Wall Street analysts’ estimates, while the AI processors sales are expected to increase sharply. With respect to the second feature, it must be considered that many businesses are trying to find alternatives rather than using AI chips developed and sold by Nvidia. However, the AMD chips represent one of the few available solutions and probably the most appropriate one, providing an incredible competitive advantage to the company in this sector. So, focusing on the analytical data, AMD forecasted revenue is equal to $5.4 billion against the $5.73 billion expected by market operators, while the 2024 AI revenue expectation increased $1.5 billion from the previous value of $2 billion. Considering the company’s overall market trend, AMD shares decreased by 3.24% (at 16:00 EST).
Sanmina Corp. (SANM) is an important US electronics manufacturing services provider, which is currently based in San José. On Monday, the company showed the fiscal earnings for 2024 Q1 that were considerably higher than what was expected by the various operators. Looking at the quarterly report, we can see that the reported value was equal to $1.30, while the forecasted EPS was only $1.22, with positive impacts on the stock price (+28% at 11:00 ET.). Unfortunately, it was clear that earnings calculated through the Generally Accepted Accounting Principles (GAAP) were definitely lower than the previously reported ones. In fact, the GAAP EPS for the quarter was only $0.98, with both the latter and GAAP sales that were below the fiscal 2023 Q1 results. All of this led to an overall percentage change in Sanmina shares price of +28.20% by 4:00 PM EST.
Author: Piero Foberti