Tech Giants Microsoft and AMD Report Strong Earnings Amid AI Boom
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What You Need To Know Ahead of Microsoft's Earnings Report
UPDATE -- July 26, 2024: This article has been updated to reflect more recent analyst estimates and share price information. Microsoft (MSFT) is set to report fiscal fourth-quarter earnings after the closing bell on July 30, with investors likely to be watching for cloud segment growth and updates on the company's artificial intelligence (AI) initiatives. The tech giant is projected to report revenue of $64.37 billion, according to estimates compiled by Visible Alpha, representing a 14.6% rise over the year-ago period. Net income is expected to come in at $21.88 billion, or $2.93 per share, a 9.3% increase from the final quarter of fiscal 2023.
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What You Need To Know Ahead of AMD's Earnings Report
UPDATE -- July 26, 2024: This article has been updated to reflect more recent analyst estimates and share price information. Advanced Micro Devices (AMD) is set to report second-quarter earnings after the bell Tuesday, with investors likely watching for record data center growth and strong guidance amid the artificial intelligence (AI) boom. The chipmaker is projected to report revenue of $5.74 billion, according to estimates compiled by Visible Alpha, which would represent 7% growth from the year-ago period. Net income is expected to come in at $343.08 million, or 21 cents per share, an increase from the second quarter of 2023.
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Microsoft and AMD, two major players in the tech industry, are set to report their quarterly earnings. Both companies are expected to show growth, largely driven by the increasing demand for AI-related products and services.
Microsoft's Q4 FY 2024 Earnings Outlook
Microsoft Corporation, a leading tech giant, is poised to report its fourth-quarter fiscal year 2024 earnings on July 25, 2023. Analysts are projecting earnings per share (EPS) of $2.55, marking a 14.3% increase from the same quarter last year
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. This growth is expected to be driven by the company's strong performance across various segments, particularly in cloud computing and artificial intelligence (AI).Microsoft's revenue is forecasted to reach $55.5 billion, representing an 8.3% year-over-year increase. The company's cloud platform, Azure, is anticipated to be a significant contributor to this growth, with an estimated revenue increase of 26.8%
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.AMD's Q2 FY 2024 Earnings Expectations
Advanced Micro Devices (AMD), another major player in the tech industry, is scheduled to release its second-quarter fiscal year 2024 earnings report on August 1, 2023. Despite facing challenges in the PC market, AMD is expected to report an EPS of $0.57, reflecting a 45% decrease from the previous year
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.However, AMD's revenue is projected to reach $5.3 billion, showing a modest 1% year-over-year growth. This growth is primarily attributed to the increasing demand for AI-related products, particularly in the data center segment
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.AI Boom Driving Growth
Both Microsoft and AMD are capitalizing on the growing demand for AI technologies. Microsoft has been integrating AI capabilities across its product lineup, including its Bing search engine and Microsoft 365 suite. The company's partnership with OpenAI and the integration of ChatGPT into various products have positioned it as a leader in the AI space
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.AMD, on the other hand, is focusing on AI-accelerated data center products. The company's MI300 accelerators are gaining traction in the market, competing with NVIDIA's offerings. AMD's CEO, Lisa Su, has emphasized the company's commitment to AI, stating that it represents the biggest opportunity in semiconductors today
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Market Implications
The performance of these tech giants has significant implications for the broader market. Microsoft's strong showing in cloud computing and AI could further solidify its position as one of the most valuable companies globally. Meanwhile, AMD's ability to navigate the challenging PC market while capitalizing on AI opportunities demonstrates the company's resilience and adaptability.
Investors and analysts will be closely watching these earnings reports for insights into the companies' strategies, particularly in AI and cloud computing. The results could potentially influence market trends and investor sentiment in the tech sector for the coming quarters.
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