We’re in the thick of earnings season. The market has also been volatile, explaining why so many blue chip stocks were moving aggressively following the release of fresh financials.
This will be a busy slate of quarterly reports this week. Several stocks you know will be announcing their results. Three companies that could shape the way this week plays out are Advanced Micro Devices (NASDAQ: AMD), Apple (NASDAQ: AAPL), and MercadoLibre (NASDAQ: MELI). Let’s take a closer look at these three companies that will be posting their latest numbers through the first three days of this week.
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1. Advanced Micro Devices
After more than doubling this year, AMD stock is the biggest gainer of the three companies I’m profiling this week. The provider of central processing units (CPUs) and graphics processing units (GPUs) has also more than quadrupled over the past five years.
AMD has emerged as a popular play on AI infrastructure. The revolution is happening, and AMD is one of the leaders providing the ammo. Revenue growth is accelerating for the third year in a row, and analysts believe it will pick up the pace again next year.
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2023: -4% Revenue growth
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2024: 14%
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2025: 34%
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2026: 47% (est.)
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2027: 75% (est.)
The top-line jumps have been substantial and should continue to be. The bottom line is growing even faster.
When AMD reports its fiscal third-quarter results on Tuesday afternoon, analysts expect revenue to rise 42% to $13 billion. This may be a step down from the 50% top-line jump it posted three months ago, but it’s still the second-strongest revenue growth it has posted in the last four years.
Analysts see earnings per share soaring 60% in Tuesday’s report. It has consistently landed just ahead of Wall Street’s quarterly profit targets over the past year.
Some AI stocks are growing faster and delivering wider profit margins. This isn’t an AMD defect. It’s an opportunity for upside. The valuation is admittedly steep. AMD is trading at 66 times this year’s adjusted earnings target and a still-premium multiple of 32 for 2027. With valuations for AI stocks coming under pressure, AMD shares tumbled 17% last month. A strong report can get AMD moving in the right direction again.
2. Apple
Apple’s revenue growth is also stepping on the gas. When the consumer tech giant reports fourth-quarter results shortly after Monday’s close, it will be Apple’s first fiscal year of double-digit growth in five years. With Apple retaking the market cap crown on Friday, all eyes will be on its latest numbers.
