Advanced Micro Devices, Inc.

NASDAQ Global Select
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Somewhat Bullish +35

FY2026 Earnings Estimate for AMD Issued By Erste Group Bank

📈 Erste Group Bank raised its FY2026 EPS estimate for AMD to $6.41 and issued a forward-looking FY2027 estimate of $12.01.

📊 The consensus analyst rating remains 'Moderate Buy' with an average price target of $468.65, though individual targets vary widely from $325 to $579.

💰 AMD reported strong quarterly performance with revenue of $10.25 billion and EPS of $1.37, surpassing analyst expectations.

📉 Jefferies Financial Group downgraded the stock from 'buy' to 'hold', contrasting with upgrades from Mizuho and Benchmark.

🏦 The company maintains a robust financial position with a market cap of $808.39 billion and a negligible debt-to-equity ratio of 0.04.

📉 Insider selling activity is notable, with CEO Lisa Su and EVP Paul Grasby collectively reducing their holdings by over $152 million in the last quarter.

📈 Revenue growth remains robust at 37.8% year-over-year compared to the same period in the prior year.

📉 The stock trades at a high valuation with a price-to-earnings ratio of 162.54 and a PEG ratio of 1.45.

Bullish Signals
  • Erste Group Bank raised its FY2026 EPS estimate to $6.41, signaling confidence in the company's profitability trajectory.
  • Mizuho Financial Group increased its price target significantly from $515 to $615 and maintained an 'outperform' rating.
  • Benchmark upgraded its price target from $325 to $485 with a 'buy' rating, reflecting strong bullish sentiment.
  • AMD beat quarterly earnings expectations with EPS of $1.37 versus the consensus of $1.29.
  • Revenue grew 37.8% year-over-year to $10.25 billion, demonstrating strong top-line growth momentum.
  • The company maintains a pristine balance sheet with a debt-to-equity ratio of only 0.04.
Risk Factors
  • Jefferies Financial Group downgraded the stock from 'buy' to 'hold', introducing a bearish counterpoint to recent analyst upgrades.
  • Significant insider selling occurred recently, with CEO Lisa Su and EVP Paul Grasby selling shares worth over $152 million in the last ninety days.
  • The stock trades at a very high price-to-earnings ratio of 162.54, which may limit upside potential if growth slows.
Full Analysis
Equities researchers at Erste Group Bank raised their full-year 2026 earnings per share (EPS) estimate for Advanced Micro Devices to $6.41, up from a prior forecast of $6.35, while maintaining a 'Buy' rating. The bank also issued a forward-looking EPS estimate of $12.01 for fiscal year 2027. This update contrasts with the broader market consensus, which currently stands at $6.26 for the full year. The article details a mixed landscape of analyst sentiment regarding AMD stock, highlighting recent actions from major financial institutions. Evercore reiterated an 'outperform' rating with a $579 price target, while Mizuho and Benchmark significantly increased their price targets to $615 and $485 respectively. Conversely, Jefferies Financial Group downgraded the stock from 'buy' to 'hold'. Despite these varying opinions, MarketBeat data indicates a consensus rating of 'Moderate Buy' with an average target price of $468.65. Financial metrics reveal AMD has a market capitalization of $808.39 billion and a debt-to-equity ratio of 0.04, indicating a strong balance sheet. The company recently reported quarterly earnings of $1.37 per share, beating the consensus estimate of $1.29, with revenue reaching $10.25 billion, a 37.8% year-over-year increase. However, insider trading activity shows CEO Lisa Su and EVP Paul Grasby sold significant shares in recent months under pre-arranged plans, totaling over $152 million in sales by insiders in the last ninety days.