Advanced Micro Devices, Inc.

🇺🇸NASDAQ Global Select
Back to all articles
Advanced Micro Devices, Inc. stock analysis AMD overview
Bullish +75

How Much Is AMD Stock Expected to Move After Earnings?

📈 Advanced Micro Devices (AMD) is set to report earnings after markets close Tuesday, potentially driving stock price movements.

💡 Traders anticipate significant volatility, with shares capable of swinging up to 8% in either direction by the end of the week based on options pricing.

🚀 A strong positive reaction could push AMD's stock to a new high near $389 from its recent close above $360 per share.

⬇️ Conversely, a disappointing result could see shares decline to a low range around $331.

📊 AMD has already risen nearly 70% year-to-date, reaching record levels as demand for AI hardware continues to grow.

💼 Analysts expect revenue of approximately $9.88 billion and adjusted earnings of $1.27 per share, representing roughly 33% growth over the prior year.

🔍 Positive sentiment is driven by better-than-expected performance from rivals like Intel, which recently triggered an upgrade for AMD.

📉 D.A. Davidson analysts upgraded AMD to a "buy" rating and raised their price target from $220 to $375 following industry trends.

😐 Analysts currently hold six "buy" ratings versus three neutral ratings, according to data collected by Visible Alpha.

🎯 Despite the current high stock price surpassing analyst mean targets of $295, many still view future upside in AI chip demand.

🤖 Sales and profits projections for AMD focus heavily on growing revenue streams from artificial intelligence solutions.

Bullish Signals
  • Sales and profits are projected to surge year-over-year driven by growing AI demand.
  • Traders anticipate AMD stock could climb to new highs following the earnings report, with shares currently trading above $360.
  • Shares have gained nearly 70% since the start of the year as the chipmaker sets a series of records amid strong AI hardware rallies.
  • Following a better-than-expected performance by rival Intel, analyst D.A. Davidson upgraded AMD to a 'buy' and raised its price target from $220 to $375.
  • Analysts see meaningful upside potential, with the company poised to benefit from rising demand for AI chips similar to Intel.
  • Wall Street forecasts indicate robust growth, projecting approximately $9.88 billion in revenue and adjusted earnings of $1.27 per share.
  • These projected figures represent significant increases of about 33% year-over-year compared to the same period last year.
Risk Factors
  • AMD shares are trading above Wall Street analysts' mean price target of $295, suggesting limited upside potential given the stock has already outpaced expectations.
  • Analysts from D.A. Davidson upgraded AMD only recently to a 'buy' with a price target of $375 after Intel reported better-than-expected results, indicating competitors are gaining traction in the market.
Full Analysis
Advanced Micro Devices (AMD) is scheduled to report quarterly earnings after markets close Tuesday, with significant market expectations surrounding the chipmaker's performance. Following a record-breaking close just above $360 on Friday, traders anticipate substantial volatility as AMD shares have already gained nearly 70% since the start of the year, driven by growing demand for AI hardware. Options pricing suggests that stock prices could swing up to 8% in either direction by the end of the week; a positive outcome could push shares toward a new high near $389, while a negative surprise might pull them down to approximately $331. Analysts are particularly eager to see if AMD can maintain momentum after its rivals, such as Intel, reported better-than-expected results. D.A. Davidson analysts recently upgraded AMD to a "buy" rating with a price target hike to $375 from $220, citing meaningful upside potential and rising demand for AI chips that would benefit both companies. Current forecasts collected by Visible Alpha predict AMD will report revenue of $9.88 billion and adjusted earnings of $1.27 per share, representing approximately 33% year-over-year increases in both metrics. The market sentiment remains largely positive, with six out of nine analysts tracked by Visible Alpha holding a "buy" rating for the stock, while three maintain neutral ratings. Despite the recent surge that has already exceeded the mean analyst price target of $295 set by Wall Street, many believe there is further potential for growth as the company capitalizes on the AI boom. The upcoming earnings report will be critical in validating whether these high expectations are justified and determining if AMD can continue its upward trajectory following a period of intense market consolidation and rival outperformance.