Computer processor maker AMD (NASDAQ:AMD) will be reporting earnings tomorrow after market hours. Here's what investors should know.

AMD met analysts' revenue expectations last quarter, reporting revenues of $6.17 billion, up 10.2% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' EPS estimates.

Is AMD a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting AMD's revenue to grow 1.8% year on year to $5.45 billion, a reversal from the 9.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they are expecting the business to stay the course heading into earnings. AMD has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at AMD's peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 8.6%, meeting analysts' expectations, and SMART reported a revenue decline of 26.7%, in line with Wall Street's consensus estimates. Intel traded down 6% following the results while SMART was also down 10.5%.

Read our full analysis of Intel's results here and SMART's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 2.9% over the last month. AMD is down 14% during the same time and is heading into earnings with an average analyst price target of $197 (compared to share price of $157.73).

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