AMD Faces Cautious Outlook Ahead of Q1 Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AMD?
Source: Yahoo Finance
- Rating Downgrade: HSBC analyst Frank Lee downgraded AMD's stock rating from Buy to Hold, indicating that much of the recent price increase may already be reflected, resulting in a roughly 5% drop in shares during Monday's morning session.
- Stock Performance: AMD shares have surged over 68% this year and approximately 258% over the past 12 months, with investors keenly focused on whether the chipmaker can sustain this rally with another strong quarterly performance.
- Earnings Expectations: Wall Street anticipates AMD will report adjusted earnings of $1.28 per share, reflecting a 33% year-over-year increase, with revenues expected to be around $9.9 billion, also up about 33%, showcasing the company's growth potential amid strong demand.
- Valuation Changes: Lee noted that AMD's valuation has sharply increased, with the stock now trading at about 33 times estimated 2027 earnings compared to around 19 times previously, and although the price target was raised from $335 to $340, it still implies about a 6% downside from current levels.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 355.260
Low
210.00
Averages
289.13
High
377.00
Current: 355.260
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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