AMD Earnings Expectations Missed; HSBC Downgrades Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy AMD?
Source: stocktwits
- Earnings Forecast Analysis: AMD is expected to report Q1 revenues of $9.91 billion and earnings of $1.29 per share; however, despite strong market demand for its server CPUs, HSBC analysts predict AMD will not exceed these expectations, indicating a cautious outlook on its future performance.
- Rating Downgrade Impact: HSBC downgraded AMD from ‘buy’ to ‘hold’ while raising its price target to $340, suggesting that although the stock may fall by 6% in the short term, there remains a reserved optimism regarding its long-term potential.
- Market Reaction: AMD's share price fell 5% on Monday following the HSBC report, reflecting investor concerns ahead of its upcoming earnings report, despite the stock having surged nearly 75% in April due to strong demand for computing power.
- Manufacturing Dependency Issues: AMD's reliance on TSMC is highlighted, with HSBC noting tighter capacity constraints through 2026; AMD is exploring a transition to Intel Foundry Services as a secondary manufacturing partner to mitigate risks associated with production bottlenecks.
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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: 341.540
Low
210.00
Averages
289.13
High
377.00
Current: 341.540
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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