This is AMD … (AMD) | Insider Markets

• AMD is expected to release its fourth quarter results after Tuesday's closing bell.
• Prior to the results, the shares were down 5% – a day after rival Nvidia warned that conditions in China had led to an "extraordinary, unusually turbulent" quarter.
• Nvidia's warning could indicate a shortfall for AMD, said a Wall Street badyst.
• Watch the AMD trade live.

AMD is expected to release its fourth quarter results after Tuesday's closing bell. Here's what badysts expect, according to Bloomberg:

• Adjusted earnings per share: $ 0.08
• Returned: $ 1.44 billion

In advance of the results, shares had already plunged 5% Tuesday – a day after rival Nvidia warned that conditions in China had led to an "extraordinary, unusually turbulent" quarter. The chip maker has reduced its revenue forecast for the fourth quarter to about $ 2.2 billion, against about $ 2.7 billion.

And a Wall Street badyst said that Nvidia's warning could indicate a shortfall for AMD.

"While the other shoe has dropped at NVIDIA, we believe that AMD is still behind in its GPU inventory problems," said Christoper Rolland, an badyst at Susquehanna International Group.

The cryptography boom of 2017 has led chip giants to overproduce graphics processing units for miners of digital coins. This created an inventory problem when the digital tokens market collapsed in 2018, leaving AMD with no place to hide, Rolland had already told Markets Insider.

In May, AMD announced that its cryptography business would drop to zero as the boom turned into a collapse. And in October, AMD's results were lower than Wall Street estimates, but the chip maker did not mention the impact of cryptography. A month later, his rival Nvidia published brutal results in the third quarter, attributing largely disappointing financial results related to the overproduction of GPUs for the exploitation of crypto-extraction.

"Remember that Nvidia is one more month in the reporting process compared to AMD, "said Rolland. Nvidia has already fully admitted the amount of its stocks. AMD only admitted half. "

AMD shares rose 5% this year and were trading around 19.16 dollars Tuesday. They have gained 45% in the last twelve months.

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