Advanced Micro Devices, Inc.

🇺🇸NASDAQ Global Select
Back to all articles
Advanced Micro Devices, Inc. stock analysis AMD overview
Slightly Bullish +25

Advanced Micro Devices, Inc. (AMD) is Attracting Investor Attention: Here is What You Should Know

📈 AMD shares returned 0% over the past month, compared to the -6.2% drop seen in the S&P 500 composite and the computer industry's -6.4%.

📊 The current quarter earnings estimate is $1.27 per share, representing a +32.3% increase from the year-ago quarter.

📈 Full-year consensus earnings are projected at $6.61, indicating a +58.5% year-over-year change with minimal recent adjustment.

🚀 The next fiscal year's earnings estimate stands at $9.97, showing a +50.8% expected increase over the prior year.

📉 Zacks Rank analysis assigns AMD a rating of #3 (Hold), suggesting near-term price movement will likely align with the broader market.

💰 Current quarter revenue estimates are set at $9.84 billion, which reflects a +32.3% increase from the previous year.

📅 Last reported quarter revenues reached $10.27 billion, marking a +34.1% year-over-year growth compared to expectations.

🏆 AMD beat consensus EPS estimates in each of the trailing four quarters and topped revenue estimates for that same period.

📉 Forward 12-month revenue estimates are projected at $60.1 billion, indicating a +32.5% change from last year.

📊 Valuation metrics place AMD in a D grade on Zacks Value Style Score, suggesting the stock trades at a premium to peers.

⚠️ Analysts recommend evaluating earnings estimate revisions over media rumors for long-term investment decisions involving the chipmaker.

💡 Investment research suggests downloading their free report titled "7 Best Stocks for the Next 30 Days" for additional recommendations.

Bullish Signals
  • Shares of Advanced Micro Devices returned 0% over the past month compared to the Zacks S&P 500 composite's decline of -6.2%, outperforming the broader market.
  • The consensus earnings estimate for the current quarter is $1.27 per share, indicating a significant +32.3% increase from the year-ago quarter.
  • Consensus sales estimates show strong upside potential with a year-over-year change of +32.3% for the current quarter and +32.5% expected for the next fiscal year.
  • Advanced Micro Devices beat consensus EPS estimates in each of the trailing four quarters and topped revenue estimates each time over this period.
  • The company reported revenues of $10.27 billion in the last reported quarter, representing a year-over-year growth of +34.1%.
  • AMD's reported revenues showed a surprise of +6.24% against the consensus estimate, and EPS surprised at +15.91%, demonstrating consistent outperformance.
  • The Zacks Consensus Estimate for the current fiscal year is $6.61 per share, indicating a robust year-over-year change of +58.5%.
Risk Factors
  • Advanced Micro Devices is rated Zacks Rank #3 (Hold), suggesting the stock may perform in line with the broader market rather than outperforming in the near term.
  • The stock is graded D on the Zacks Value Style Score, indicating it is trading at a premium to its peers and may be overvalued relative to valuation multiples like P/E, P/S, and P/CF.
Full Analysis
Advanced Micro Devices, Inc. (AMD) has recently appeared on Zacks.com's list of most searched stocks, prompting an analysis of key factors influencing its near-term performance. Shares of the chipmaker have returned 0% over the past month, contrasting with a -6.2% decline in the Zacks S&P 500 composite index and a -6.4% drop in the Zacks Computer - Integrated Systems industry. While market buzz often drives immediate price changes, the article emphasizes that fundamental factors, particularly earnings projection revisions, ultimately dominate buy-and-hold decisions. Zacks evaluates fair value based on the present value of future earnings, noting a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Fundamental data for AMD indicates significant projected growth, with current quarter earnings expected at $1.27 per share, representing a +32.3% increase from the year-ago quarter, while revenue is estimated at $9.84 billion, up +32.3% year-over-year. The consensus earnings estimate for the current fiscal year stands at $6.61, indicating a +58.5% increase from the prior year, and the next fiscal year estimate is projected at $9.97, a +50.8% rise. Recent quarterly reporting showed the company beating consensus estimates, with reported revenues of $10.27 billion (a +34.1% year-over-year change) compared to a consensus of $9.67 billion, resulting in a revenue surprise of +6.24% and an EPS surprise of +15.91%. AMD has beaten consensus estimates for EPS and revenue in each of the trailing four quarters. Despite strong earnings growth and consistent beats, Zacks' proprietary stock rating tool assigns AMD a Zacks Rank #3 (Hold). This rating is derived from the size of recent changes in consensus estimates alongside other factors related to earnings projections. Valuation analysis further influences this outlook; AMD received a Zacks Value Style Score of D, indicating it is trading at a premium to its peers when evaluated against traditional and unconventional valuation metrics such as price-to-earnings, price-to-sales, and price-to-cash flow ratios. The article concludes that while the facts presented may inform decisions on whether to follow market attention toward AMD, the Zacks Rank #3 suggests the stock is likely to perform in line with the broader market in the near term.