Advanced Micro Devices, one of the world's largest high-performance computing, graphics, and visualization technologies company, is scheduled to release 4th quarter earnings after the closing bell this afternoon, with a press conference to follow at 5:00 pm ET. 

Analysts are expecting EPS of $0.05 per share on revenue of $1.40 bln. 

Analysts will be watching for sales of the Ryzen processor which was a significant driver of revenue last quarter as well as sales of the Radeon RX GPU which should see an uptick in sales due to increased blockchain interest throughout the quarter. 

Guidance Details:

  • Issued upside guidance for Q4, sees Q4 revs down 12-18% Q/Q (+26% Y/Y) to ~$1.34-1.45 bln 
  • Expect Non-GAAP gross margin to be ~35% 
  • Expect 2017 annual revenue to increase by greater than 30% over 2016

Key Points from Last Quarter:

  • Third Quarter 2017 sales of $1.64 billion, up 25.7% from $1.31 billion in 3Q 2016. 
  • Computing and Graphics revenue was $819 million, up 74% y/y and 24% q/q. 


Based on AMD options, the current implied volatility stands at ~ 67%, which is 54% higher than historical volatility (over the past 30 days). Based on the weekly AMD Feb02 $13 straddle, the options market is currently pricing in a move of ~10% in either direction by weekly expiration (Friday).